“GameStop and AMC Lead Meme Stock Surge – Is 2024 the New 2021?”

In a deja vu moment reminiscent of the 2021 meme stock frenzy, GameStop (GME) and AMC Entertainment (AMC) once again took center stage in the stock market on Tuesday. Both meme stalwarts saw significant gains, with GameStop closing the day up 62% and AMC jumping by 30%. This resurgence in meme stock activity was fueled by gentle coaxing from Keith Gill, also known as Roaring Kitty, prompting a slew of Reddit-familiar names like Koss (KOSS), Tupperware (TUP), Virgin Galactic (SPCE), Hertz (HTZ), and BlackBerry (BB) to follow suit.

However, despite the similarities to the 2021 saga, 2024 is shaping up to be quite different. This time around, Wall Street seems to be driving the bus. Vanda Research reported that the inflows into GameStop and AMC have been significantly lower compared to the peak of the 2021 frenzy. Institutional investors, who were caught off guard in 2021, are now better prepared to handle such situations.

The data in the options market also reflects a similar story, with retail investors accounting for a smaller portion of share turnover in GameStop and AMC compared to 2021. This year’s meme stock activity lacks a single coherent narrative like the one that captured headlines in 2021, with volatility being fueled more by material news and fundamentals rather than Reddit posts.

While GameStop and AMC saw impressive gains over the past two days, other meme stocks on the rise, like Coinbase (COIN), Carvana (CVNA), and Palantir (PLTR), have been making their gains through traditional means such as earnings and bitcoin fundamentals. The overall market sentiment seems to be shifting towards a more balanced approach to investing in meme stocks, with a focus on underlying fundamentals rather than speculative trading.

In conclusion, while the resurgence of meme stocks may evoke memories of the 2021 frenzy, the landscape in 2024 appears to be evolving towards a more measured and informed approach to trading. Wall Street’s increased participation and focus on fundamentals suggest that the meme stock phenomenon is maturing, paving the way for a more sustainable and rational market environment.