Meme stocks continued their upward trajectory on Tuesday, with GME, AMC, KOSS, Virgin Galactic (SPCE), and BlackBerry (BB) all experiencing significant gains in early trading. Short sellers have collectively incurred losses of nearly $2.2 billion on GameStop (GME) stock so far this week, according to reports.



AMC Entertainment (AMC) announced early Tuesday that it successfully raised $250 million in equity capital on Monday by selling 72.5 million shares at an average price of $3.45 per share. In other news, Citigroup raised its price target on AMC stock from $3.10 to $3.20, citing the company's Q1 earnings and adjusted EBITDA performance in line with expectations from May 8. Despite this, Citigroup maintains that AMC remains overvalued at current levels.

Meanwhile, short sellers of GameStop (GME) suffered an additional $1.36 billion in mark-to-market losses as of early afternoon Tuesday, on top of the $838 million loss incurred during Monday's significant rally, CNBC reported, citing data from S3 Partners. This brings the total mark-to-market losses for GME shorts to nearly $2.2 billion so far this week.

Analysts at S3 Partners anticipate further short covering on GME in the coming days, noting the stock's 100/100 "squeeze score" before Monday's trading, indicating a high likelihood of a short squeeze compared to its peers.

AMC shorts also faced losses, totaling $244 million as of late morning Tuesday, following a $127 million loss on Monday, according to analysts with S3 Partners.

Roaring Kitty Returns

Monday saw a surge in GameStop stock and AMC shares following the return of Keith Gill, also known as Roaring Kitty, to social media after a three-year absence. Trading on GME stock was temporarily halted multiple times on Monday by the New York Stock Exchange as shares surged.

Gill, known by his online alias Roaring Kitty, posted on the social media platform X for the first time since June 2021, sharing an image suggesting he is "getting serious."

Gill gained notoriety in 2020 and 2021 as a key figure in the GameStop short squeeze. The former financial analyst was called to testify before the House Financial Services Committee in February 2021 regarding potential market manipulation.

Retail investors celebrated his return, signaling renewed enthusiasm for meme stocks.

Previous Short Squeeze

GameStop stock surged by 688% in 2021, driven by retail investors coordinating buying activity on online forums. This caught short sellers off guard, leading to substantial losses for those betting against the stock.

The entire short squeeze saga was depicted in the documentary "Dumb Money."



GME stock pared gains to 60% on Tuesday, following a 98% surge in early trading, adding to Monday's 74.4% rally. AMC stock jumped nearly 32% on Tuesday, following a 121% spike at the open, reaching its highest level since November. Other meme stocks also saw gains, with KOSS up 40.7%, Virgin Galactic up 22.1%, and BlackBerry up around 12% on Tuesday.

Beyond Meat (BYND), Rent The Runway (LEAS), and SunPower (SPWR) were among the other actively traded names.

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