GameStop and AMC Entertainment stock prices plunged Wednesday after two days of gains sparked by the return of “Roaring Kitty” Keith Gill.
In 2021, Gill was at the center of the meme stock frenzy.
Meme stocks are stocks of certain companies that have increased in value as individual investors used investment advice from trading platforms and social media.
Also read: Wall Street Today: U.S. stocks soar on inflation data
Video game retailer GameStop fell nearly 30%, almost half of its gains over the past two sessions, and movie theater chain AMC fell 25% after soaring 135% in the same period.
AMC said in an exchange filing that it will issue approximately 23.3 million shares of its stock in exchange for $163.9 million in debt.
The trade, popular with retail investors, was halted multiple times after the market opened, with investors exchanging more than $2.3 billion worth of GameStop shares.
On Tuesday, “Roaring Kitty” shared a clip from the movie “Braveheart” on It blinked.
This is the first time Gil has mentioned the name of a company since returning to X after a three-year hiatus.
Also read: Explainer: Why are Wall Street meme stocks rising again?
In 2021, Gill’s YouTube stream and series of posts on Reddit helped bring in tons of retail cash for GameStop.
In his 2021 congressional testimony, Gill rejected the idea that he used social media to promote GameStop to unwitting investors and make a profit.
On Tuesday, AMC and GameStop were among the top 10 securities bought by retail investors.
US stocks
U.S. stock indexes rose on Wednesday after consumer prices rose less than expected.
As of 11:20 a.m. ET, the Dow Jones Industrial Average was up 261.81 points, or 0.66%, at 39,819.92, the S&P 500 was up 44.95 points, or 0.86%, at 5,291.63, and the Nasdaq Composite Index was up 160.59 points. 16,671.77, or 0.97%.
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