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GameStop's stock recently experienced a dramatic surge, reminiscent of the 2021 meme stock phenomenon. On May 13, 2024, GameStop (GME) shares skyrocketed more than 70% in just one day, reviving memories of the retail investor frenzy that captivated the financial world three years ago. This unexpected spike was triggered by a viral social media post from "Roaring Kitty," a key player in the initial meme stock craze. The stock plummeted more than 20% just a few days later when the video game retailer announced plans to issue more shares and released disappointing preliminary first quarter results.

YouTube Host Matt Kohrs observed the similarities to past GameStop stock action noting, "it's very similar to 2021, this is the resurgence of meme mania."

Financial Insyghts President Peter Atwater warned it may indicate a potential market downturn. "The meme stock trade tends to only occur at extremes of sentiment... this is another moot indicator that the markets are reaching a point where we should expect some sort of a meaningful pullback."

tastylive Founder and CEO Tom Sosnoff explains that does not see the relation to the 2021 GameStop event, "I don't look at this at all like I did it 2021...this is all the players just transitioning or moving into something that's actually active."

Wedbush Equity Research Managing Director Michael Pachter warned investors of Gamestop's future. "They're going to see continued declines, there is nothing big coming out this year...lots of headwinds for them and I don't see any way out of it."

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This post was written by Colin Webb.