In a sea of red, a well-known meme stash did indeed look quite green at Monday’s closing bell.
Shares of GameStop GME,
closed 2.6% on the day despite heavy market sell-offs as investors pointed out that increasing cases of the delta-COVID variant posed a threat to the global economy’s recovery.
What news boosted every retail investor’s favorite video game retailer on the same day that Dow Jones Industrial Average DJIA,
has posted the worst result of 2021 so far?
Not at all.
In fact, the big news on GameStop wasn’t news, a situation that didn’t seem to bother the company’s army of fans on Reddit and Twitter, who made it abundantly clear that they still “love the stock.”
On Reddit, GameStop’s legion of so-called “Monkeys” praised their “diamond hands” and even shared that they were buying option orders on Fidelity’s trading platform going into lockdown, even after experiencing difficulties buying GME earlier in the day.
“Nice! I really think this stock is undervalued, even with all [hedge fund] mess around it,” user Highlander2748 posted. “It will pay off. It may take a while, but it’s worth the wait.”
Volume on GameStop was well below the daily average, but data from HypeEquity showed that social media volume increased by more than 100% on the day with “buy” and “hold” mentions surpassing “sell” mentions. by more than 2 to 1.
“Banks, Disney, crypto, basically the entire market has suffered huge losses today and it’s business as usual as we outperform most of the market and the only news item I see is meme stocks losing momentum,” it posted. user WigglesPhoenix on subreddit Superstonk.
That feeling was also reflected in other memes.
While AMC Entertainment AMC,
stocks fell more than 10% on Monday, shares were briefly in the green in the last hour of trading and closed less than 1% after a furious rally. Clover Health Investments Corp. CLOV,
another key meme stock, also fell early, but closed 1.2% for the day.