- NYSE:GME gained 13.61% on Thursday as meme stocks bounced back.
- AMC was trending on social media as another organized short squeeze was attempted.
- GameStop has become reliant on coordinated efforts in order for the stock to see any sort of volume.
NYSE:GME saw another social media resurrection on Thursday, but this time it played second fiddle to AMC (NYSE:AMC) and investors were along for the ride. GameStop surged on Thursday, adding 13.61% to close the trading session at $164.50, shooting back over its 50-day moving average price. It has been a while since GameStop investors saw this type of movement in a single trading day, and the stock has been mired in a downward trajectory since the stock reached its pinnacle during the original Reddit short squeeze in late January.
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GameStop’s meme stock counterpart AMC was trending on social media with the hashtag #AMCSqueeze. The subreddit group r/amcstock was one of the leaders of the movement, and announced that shorts would have cover by today in order to close out their short positions. Redditors were certainly hopeful of another short squeeze of the magnitude of the one in January, but the momentum fizzled out midday and shares ended the session at $12.77, after hitting a high of $14.20 during intraday trading. The one day gain was still good enough for a 24% increase in the stock’s price, and GameStop certainly rose as a sympathy to AMC’s squeeze.
It seems as though GameStop is at the point where it needs a social media movement in order to exhibit any sort of reasonable trading volume levels. The daily trading volume on Thursday surpassed 8 million shares, which is the most it has seen in weeks. While this works when a coordinated short squeeze occurs, it also flows back the other way, as any sort of bearish action can cause the stock to plummet.
