GameStop (GME) and AMC (AMC) short sellers have lost a combined $5 billion In the last two days due to the ongoing stock share. After a 74% rally on Monday, Gamestock shares continue to climb on Tuesday, as well as AMC and other meme shares.
The return of retail investor “Roaring Kitty” to social media prompted this massive surge. The investor, Keith Gill, marked his return to the market on Sunday, posting a popular meme of a gamer sitting up to play a game “seriously” from a previously slouching position. The meme is a popular one to indicate when it’s time for someone to “get in the zone,” and Gill’s post woke up investors to a stock frenzy.
In the hours after the surge began, Roaring Kitty posted more memes to fuel excitement. The posts featured clips from “Ferris Bueller’s Day Off,” which morphed into “Breaking Bad,” the poignant “No Fighting” scene delivered by Cillian Murphy from “Peaky Blinders,” and “Tombstone,” starring Kurt Russell.
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Short Sellers Lose Out As GameStop Stock Explodes
While GameStop shareholders prior to Sunday were basking in the profit, short sellers were out of luck. Combined with another popular Reddit stock, AMC, the latest GameStop frenzy has cost short sellers over $5 billion over the last 48 hours.
“It wasn’t just GME rallying yesterday; it was a lot of the most heavily shorted stocks in the market,” Bespoke Investment Group wrote in a note to clients. “This type of action with no basis in fundamentals is simply not worth chasing as you’re bound to get burned eventually. Be very careful out there!”
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Shares of GameStop have gained over 240% this year, and as of this morning, AMC shares have doubled. The last huge surge led by Roaring Kitty lasted for several days before a significant crash. Therefore, it’s unclear how long this bull run will last.