Meme stocks have skyrocketed! Game Stop, AMC, and the Instigator are back! Will we follow the same path as in '21?

Keith Gill (nickname “Rolling Kitty”), who is said to have sparked meme stocks in 2021, started posting on social media X for the first time in 3 years. In the same post, a man leaning forward with something like a game controller was depicted, leading to speculation about Mr. Gill's resurrection.

Aggressive trading of the exchange rate on 5/13 was refrained prior to the announcement of the producer price index (PPI) and consumer price index (CPI), which are important indicators showing inflation trends in the United States (14th and 15th, respectively). Therefore, since the overall market price was calm, the sharp rise in meme stocks attracted particular attention.

Will the revival of meme stocks on 5/13 follow the same path as 2021?

Based on Gill's influence in 2021 and the sharp rise in related stocks on 5/13, there may be such a possibility. On the other hand, at that time, at the beginning of the pandemic, the stock market was “in a state where money was juggling” due to the supply of liquidity to the market by the central government and the payment of benefits to individuals. It was, so to speak, a liquid market. This point is different from the current situation. From the viewpoint of liquidity (liquidity), there is a possibility that this will not be a sharp rise like in 2021.

However, after the meme stock boom ended in 2021, Game Stop and AMC stock prices have fallen by 60% or more and 99% or more from their peak, respectively. Stock prices continued to rise and fall rapidly even during the boom period for meme stocks.

Meme stocks generally have weak fundamentals, have a high short selling ratio, and stock prices are easily greatly influenced by temporary supply and demandit's for. Therefore,It can be said that it is necessary to be careful about the high volatility of meme stocks. As a reminder, related stocks were summarized based on Bloomberg articles。

Also,Please keep in mind that in the case of meme stocks, they are not based on fundamentals, and there is a risk that stock prices will skyrocket and plummet due to temporary supply and demand。Implications for the overall marketAs a matter of fact, the recent sharp rise in meme stocksIt may suggest that investors' risk-taking appetite has returned. In that sense, vigilance is necessary, but there is also a possibility that it will work positively for the overall market price.