Video game retailer GameStop rides meme-stock revival for longest rally since 2010
GameStop Corp. rose for a 10th consecutive session Monday, giving the stock its longest winning streak since April 2010. The Grapevine, Texas-based video game retailer has surged a staggering 143% during this run, as Wall Street pros and individual investors pile into riskier pockets of the market, spurring a revival in so-called meme stocks. GameStop closed at the highest in roughly four months, while another retail trading favorite, movie theater chain AMC Entertainment Holdings Inc., soared 45% for its best day since June.
The latest rally for the duo pales in comparison to the madness that shook Wall Street last year, but it’s a signal that investors aren’t done with meme stocks just yet. AMC Entertainment shares are up nearly 1,300% from where they ended 2020, while GameStop has gained more than 900% over that stretch.
Both of the companies were among the most actively traded stocks on Fidelity’s platform on Monday, trailing only Tesla Inc. Options betting on further strength was notable for both stocks.
Beyond GameStop and AMC, a basket of 37 meme stocks tracked by Bloomberg climbed 11% on Monday, adding to a now 46% gain from a March 14 bottom. Despite the latest rebound, the group remains down 18% from where it traded a year ago.
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