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GameStop and AMC have seen significant buying activity from individual retail investors, with over $15.8 million and $37.5 million in net inflows on Monday, according to data from Vanda Research. However, these numbers are much lower than the peak daily inflows seen during the meme stock explosion in late January 2021, which reached $87.5 million for GameStop and $170 million for AMC. The recent surge in these stocks was triggered by mysterious social media posts from “Roaring Kitty,” also known as Keith Gill, who played a key role in the meme stock frenzy three years ago.

Despite the initial excitement surrounding GameStop and AMC, the momentum was somewhat dampened on Tuesday as the stocks experienced more modest gains. Along with other meme stocks like BlackBerry and Koss, GameStop and AMC saw their prices fall from session highs as the trading day progressed. However, both stocks still managed to climb more than 60% and 30% on Tuesday, and have seen significant gains of over 100% so far this week.

Investing professionals have expressed concerns about the recent rallies in GameStop and AMC, as they appear to be driven by speculative trading rather than strong fundamentals. The resurgence of interest in these meme stocks has put pressure on short-sellers who bet against them, leading to further volatility in the market. Despite the lack of clear catalysts for the stock movements, retail investors seem to be fueling the continued momentum in these names, defying the expectations of many market observers.

The latest surge in GameStop and AMC comes as a reminder of the power of social media and online forums in influencing stock prices, as seen during the meme stock frenzy in 2021. “Roaring Kitty” and other influential retail investors have once again captured the attention of the market with their cryptic messages and posts on platforms like X and Reddit. The ongoing interest in these stocks highlights the changing dynamics of stock trading, where individual investors can have a significant impact on the market through coordinated online efforts.

Despite the uncertainties surrounding the recent rallies in GameStop and AMC, retail investors continue to show strong support for these meme stocks. The buying activity from mom-and-pop investors has driven up prices and caused headaches for short-sellers who have bet against these companies. The resilience of these stocks in the face of skepticism from investing professionals underscores the influence of retail traders in shaping market trends and challenging traditional views on stock valuation.

As GameStop and AMC, along with other meme stocks, continue to see heightened volatility and speculative trading, the debate over the sustainability of these rallies rages on. While some investors remain cautious about the long-term prospects of these companies, others see the current market environment as an opportunity for retail investors to challenge established norms and have a significant impact on stock prices. The future trajectory of GameStop, AMC, and other meme stocks remains uncertain, but their recent resurgence has once again put them in the spotlight as symbols of the evolving landscape of stock trading in the digital age.

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