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According to an Investor’s Business Daily review of data from S&P Global Market Intelligence and MarketSurge, investors who took advantage of the recent online craze surrounding shares of the struggling video game retailer lost $13.1 billion from the peak of the mania in just three days. The decline from the peak on May 14 now greatly surpasses the $6.8 billion total worth of GameStop (GME).
Investors have learned a painful lesson from it; some may have lost billions on GameStop and other heavily shorted firms that were praised on social media the last time around. The ridiculousness was brought to light in the 2023 film “Dumb Money”.
Market researcher Tobi Opeyemi Amure of Trading Biz stated, “The revival of Roaring Kitty’s influence on meme stocks like GameStop demonstrates the power of social media and individual investors in shaping market dynamics.” “This event is reminiscent of the 2021 frenzy that sent shock waves through the financial world.”
Last week, online influencer “Roaring Kitty” posted a mysterious message on X, a previous Twitter platform, which fanned the meme stocks and set off the GameStop 2.0 frenzy. GameStop’s price surged 271% in a short period of time, peaking at 64.83 on May 15.
But the craze dissipated equally quickly. The weekly gain on the stock has dropped to 27%. Those who arrived after hours suffered far more. Since its peak, the stock has dropped 66% to 22.22. Not just one investor outwitting the stupid money—there are others who are selling their shares. Even the business is benefiting from this.
