GME and AMC Stocks Surge Following Roaring Kitty's Tweet

On Thursday, shares of GameStop Corp. and AMC Entertainment Holdings Inc. saw a significant increase due to a tweet from influential online figure Roaring Kitty. GameStop's stock rose by 10%, while AMC Entertainment experienced a 12% increase. The tweet featured a modified cover of Time magazine dated December 25, 2006, with the word "you" removed, leaving a blank computer screen inscribed with "time."

The market's reaction was swift; GameStop shares triggered a temporary volatility halt, surging by up to 14%. AMC Entertainment's stock also shot up, achieving gains of up to 13%. This sudden movement in shares echoes the meme stock frenzy of January 2021, during which both companies were at the center of a retail trading explosion.

Keith Gill, known as Roaring Kitty, gained fame during the meme stock phenomenon of 2021. His tweet, which did not contain explanatory text, led to speculative trading and caused related stocks, such as Unity Software Inc. (NYSE: U) and Clear Secure Inc. (NYSE: YOU), to respond as well.

This mysterious tweet also sparked activity in options trading. Unity Software experienced a rise in bullish call options, with trading volume reaching its highest level since September 24. The one-month call option skew for Unity more than doubled compared to the previous day. In the case of Clear Secure, a trader implemented a complex options strategy that contributed to record levels of call option volume and open interest on the stock.

This recent rally in meme stocks coincides with a period of signs of excessive optimism in U.S. financial markets. Bitcoin's value recently surpassed $100,000, and stocks continue to set new records while credit spreads remain tight. Roaring Kitty's influence on the market, as demonstrated by his occasional yet impactful shares, continues to play a role in the trading dynamics of certain stocks.