Meme stocks are back on Wall Street. However, experts predict things may go a little differently this time.

A year after the pandemic, meme stocks rose to fame on Wall Street. This also caused some companies like GameStop and AMC to see huge spikes in their stocks. Now, meme stocks are seeing another rise, which is quite similar to what happened in 2021. However, analysts predict that things might be pretty different this time around. 

A meme stock is a regular stock but with a twist. This stock has become very popular among retail investors through social media. More often than not, these investors are amateurs who are young and inexperienced. They post about the stock using several memes, gaining popularity on social media. They also collaborate with high-traffic sites such as Reddit. 

Meme stocks weren’t always a thing. They became a popular part of the culture early in 2021 while people were recuperating from the effects of the pandemic. This was also when many investors started to buy stocks in GameStop. This new wave saw the rise of many online personalities, including Roaring Kitty, a popular figure in the meme stock world who helped increase GameStop stock.

ALSO READ: Controversial Marjorie Taylor Greene’s Stock Portfolio Reveals Conflicts of Interest 

Statistics from the past few weeks suggest that meme stocks, which died down a bit in 2022, are back in full force. GameSpot reported a massive rise in stocks this week, jumping up about 60.1%. This was only a day after the company experienced an impressive 74% rise on Monday. AMC Entertainment is also reporting a rise in Wall Street, as it jumped a significant 32% on Tuesday.

The exact reason for these significant rises in meme stocks is unknown. In fact, it comes as a big shock to its regular buyers and investors alike. This is because the usual practice is that people would only mass-buy stock when they believe the company’s earnings are equal to its stock. However, meme stock‘s rise is defying this practice. 

The current high momentum to buy GameStop shares has caused many traders to continue to mass-buy. This week alone, buyers have been willing to pay really high prices for GameStop shares. However, this remains quite shocking to the company as it did not release any new offers that could explain the sudden surge. Last week was also relatively quiet for GameStop.

POLL—Should the Government Increase Taxes on the Wealthy To Reduce Economic Inequality?

Many people have associated the surge in the company’s stock with the return of the social media personality Roaring Kitty. This is quite similar to what happened in 2021. The account has been silent since June 18, 2021, but made a comeback this past Sunday. The account posted a meme of someone who was lounging about and then suddenly became alert to signify their return.

Once word of Roaring Kitty’s return got out, many social media users, investors, and traders decided to buy GameStop shares again. Therefore, this can be the sole cause of the sudden surge that the company has been experiencing. When those who bought stock shared that they were making their profits, it caused another spike as others rushed to buy theirs.

Meme stocks might not seem serious to some people, but the money is quite good. A quick look at the stock market can show how significant the meme stocks are. GameStop’s prices rose so drastically on Monday that the company had to pause trading nine times in just one hour. The same thing happened with AMC Entertainment on Tuesday, causing them to halt trading 18 times by that afternoon. 

ALSO READ: Donald Trump’s Truth Social Stock Hits Turbulence, Experts Predict More Volatility Ahead

This surge in the stock market happened before in 2021, but many analysts predict that it might be somewhat different from what we see now. On Monday alone, investors pumped a whopping $15.8 million into GameStop and $37.5 million into AMC Entertainment. While this is a great feat, it is little compared to 2021’s numbers, which were $87.5 million and $170 million, respectively. 

Many analysts predict that these 2024 numbers might increase but won’t reach those of 2021, which went through the food. They also point out a major difference, showing that GameStop now has about 305.9 shares on the trading market. This is way more than it did back in 2021. Therefore, it will also reduce the probability of a massively high return. 

This surge is quite familiar to Wall Street. Many remember the surges in 2021, and this is not new to them in many ways. Therefore, it is easier for analysts to predict what will happen next regarding meme stocks. They have also successfully studied the meme stock market in 2021, applying that knowledge to the present.

You Might Also Like:

Tesla in Trouble as Stock Prices Continue to Drop in 2024

Hundreds of Ford Dealerships Hit the Brakes on Stocking EVs

Former Wall Street Banker Challenges Ocasio-Cortez in Democratic Primary