(Bloomberg) — GameStop Corp. helped lead a bevy of retail trader favorites higher on Tuesday as investors touted the stocks on social media platforms including Twitter, Stocktwits and trader chatroom WallStreetBets.
GameStop soared 16% to $209.43, the highest since March 17, propelled by an influx in mid-afternoon trading in New York. Movie theater company AMC Entertainment Holdings Inc. also stood out, with the stock jumping 20% to a roughly four-month high.
A basket of 37 so-called meme stocks tracked by Bloomberg spiked 5.4% to break above its 50-day moving average for the first time since March. The rally came as trading volumes jumped for AMC and Gamestop, as well as for companies including headphone maker Koss Corp. and clothing company Naked Brand Group Ltd.
More than 200 million shares of AMC changed hands Tuesday, making it the second most actively traded stock with a value greater than $1. For GameStop, more than 14 million shares were traded — more than triple what’s been typical over the past five sessions.
When the dust settled on Tuesday’s session, Koss was the group’s top performer, staging a 23% rally to $20.78 while Naked Brand rose 7%. Other retail favorites like Express Inc. and Sundial Growers Inc. climbed more than 5%.
The rally marks a fourth day of gains for the group and another notable departure from the broader market’s performance. Most major groups in the S&P 500 fell after a gauge of new U.S. home sales slid by more than forecast as higher prices restrained demand. The index dropped 0.2%.
(Updates share movement throughout, adds additional stock performance in fifth paragraph.)
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