The rapid rise and fall of meme stocks this week show the power of social media in influencing the market. Read on to learn how the return of Roaring Kitty started a rally. 

Meme stocks like GameStop, AMC, and Blackberry surged this week after an investor known as Roaring Kitty (aka Keith Gill) began posting on X (formerly known as Twitter) after a three-year hiatus. Gill helped drive the 2021 gains and his return to the social media platform last Sunday was enough to fuel another surge. (Marketplace)

GameStop and AMC were up 179% and 135% this week, respectively, before dropping again by Wednesday. The rally was not nearly as big or long-lived as three years ago. (CNBC)

Dan Egan, the head of behavioral finance at investment advisor Betterment, says the difference between now and 2021 is that, "In 2021, interest rates were low, and people were stuck at home during the pandemic with extra cash from stimulus checks. None of those things are happening in 2024." (Quartz)

Nonetheless, what it does show is how social media can influence behavior. "The fact that Roaring Kitty is back should be totally meaningless to the stock market (but) the fact that it isn't is fascinating," said Matthew Tuttle, CEO of Tuttle Capital Management in an interview. (Reuters)

Want to better understand the meme stock phenomenon? Check out our On-Demand module, The Psychology Behind the GameStop Frenzy. 

About the Author

Hannah Rael

As NGPF's Marketing Communications Manager, Hannah (she/her) helps spread the word about NGPF's mission to improve the financial lives of the next generation of Americans.