Michael Nagle/Bloomberg, Getty Images
It’s 2021 all over again…or so it seems.
GameStop (GME) and AMC Entertainment (AMC) are on fire this week as meme stock momentum roars back into the market. Shares of GME spiked over 24% on Wednesday, while AMC gained 16%, driven by the reappearance of Keith Gill, better known online as “Roaring Kitty”, and a wave of renewed retail trading activity.
But with fundamentals still lagging and institutional shorts circling, the question is: is this a meme stock renaissance or just another head fake?
GME is up 122% year to date; AMC is up 61%.
GME current price (as of July 24): $44.57
AMC current price: $5.81
Both stocks saw 10%+ intraday swings multiple times this week.
Source: Yahoo Finance – GME, Yahoo Finance – AMC
What Sparked the Rally?
The latest surge began after “Roaring Kitty” posted a new YouTube video on July 23, his first in years, showing a massive $175 million position in GME stock and call options. The viral trader, who helped ignite the original 2021 rally, doubled down on his belief in GameStop’s long-term potential as a digital-first gaming brand.
The post sent social media into a frenzy. Within hours, Reddit’s r/WallStreetBets and X (formerly Twitter) were flooded with GME memes, trade screenshots, and calls to "hold the line."
AMC rallied in sympathy, boosted by increased chatter about potential debt restructuring and the strong summer box office performance of Deadpool & Wolverine and Despicable Me 4.
What's the Reality Beneath the Hype?
Despite the excitement, analysts are urging caution. GameStop still faces major headwinds in transforming from a physical retailer to a modern gaming platform. Its most recent earnings report showed declining revenue and little detail on a clear growth roadmap.
AMC’s fundamentals remain equally shaky. While attendance is improving post-COVID, the company is still burdened by over $4 billion in debt and limited pricing power. Analysts warn the rally may be more emotional than logical.
“Retail traders are chasing sentiment, not strategy,” said Steve Sosnick, chief strategist at Interactive Brokers. “These stocks are still driven by vibes, not value.”3
The Meme Stock Scorecard
Stock | YTD Gain | Short Interest | Market Cap | Most Recent Catalyst |
|---|---|---|---|---|
GME | +122% | ~21% | $9.2B | Roaring Kitty video |
AMC | +61% | ~17% | $3.4B | Reddit chatter + box office |
Short interest remains high in both names,a key ingredient for sudden squeezes if retail momentum sustains.
Why It Matters
The return of meme stock mania is more than just financial nostalgia. It signals a reawakening of the retail trader, many of whom sat out much of 2023’s AI-fueled rally. With the S&P 500 hovering near record highs and risk appetite returning, retail traders are once again embracing YOLO strategies.
Robinhood (HOOD) and Reddit (RDDT) — both integral to the 2021 movement, also saw their stocks climb this week as investor activity picked up.
But this time, institutions are more prepared. Market makers have adjusted to the volatility, and short sellers have hedged exposure. That means the odds of another true short squeeze are lower, unless new catalysts emerge.
“This isn’t about balance sheets or earnings, it’s about belief,” said retail strategist Tasha Reeds at Mott Capital. “That’s what makes meme stocks so powerful, and so dangerous.”
The Bottom Line
Meme stocks are back in the headlines, but whether this rally has staying power remains to be seen. While social sentiment can move markets short-term, fundamentals, or the lack thereof, eventually come knocking.
Unless GameStop and AMC can show real strategic progress, this might be another chapter in the saga of viral gains and painful hangovers.