On the second day of US stock &#34;retail investor king&#34; Keith Gill's high-profile return and return to the social platform X, retail investors launched another fierce attack on meme stocks, continuing the high-profile short squeeze.
Video game retailer GameStop (GME) and movie group AMC Entertainment (AMC) saw their stock prices continue to soar. After astonishing gains of 73% and 77% respectively on Monday, overnight GME and AMC continued to surge by 60% and 32% respectively, marking their largest increases since June 2021 and January 2021.
In addition, several other retail investor favorite stocks surged overnight. Headphone manufacturer Koss saw a 40% increase in stock price, BlackBerry's stock price rose by 12%, Bed Bath &amp; Beyond rose by 17%, &#34;US stock retail investor headquarters&#34; Reddit's stock price rose by 7%, and popular online brokerage Robinhood's stock price rose by nearly 7%.
Since last Friday's close, GME's stock price has nearly doubled, pushing its market value to around $18 billion. On Monday, the trading volume of GME and AMC reached 15 times and 20 times their 20-day average levels, respectively.
This astonishing blow to the short sellers cannot be underestimated. Analysis company Ortex Technologies stated that short sellers incurred losses of up to $1.6 billion on Tuesday, bringing their total losses since Monday to $2.4 billion.
S3 Partners' Managing Director of Predictive Analytics, Ihor Dusaniwsky, predicted:
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Tuesday's losses will cause many short sellers to panic, and they will push GME's stock price even higher by buying to cover.
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Some short sellers are very puzzled by this frenzied market trend. Citron Research founder Andrew Left commented:
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It's absurd, but it's all part of a free market.
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Some analysts also believe that a market dominated by speculative behavior is unlikely to last long, as the current situation is different from 2021, with significant increases in interest rates.
It is worth noting that former Chief Investment Officer of PIMCO and bond guru Bill Gross has started to adopt a more &#34;laying down to earn&#34; approach. He sold call and put options on GME and AMC on Tuesday, betting that the stocks will not experience significant fluctuations in either direction.
Has the &#34;retail investors beating Wall Street&#34; entered the next level?

RDDT

HOOD

GME and AMC surged 60% and 32% overnight, both hitting new highs since 2021. Headphone manufacturer Koss rose 40%, BlackBerry phones rose 12%, BlackBerry rose 17%, "American stock retail investors' headquarters" Reddit rose 7%, and popular online brokerage Robinhood rose nearly 7%

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Reddit

"The Return of the King"! GME and AMC surged for the second consecutive day, everything seems to be repeating the events of 2021