Gamestop (NYSE:GME) is off to a good start this week. And every time a trading week begins with GME stock surging, the question has to be asked as digital investment communities scramble — is it happening again? A few other questions often stem from these discussions, though, which are perhaps more important: When are we going to see the next Reddit stock surge? And how can we get out in front of it before it surges too much?
GME Stock: What’s the Word Today?
Last week, InvestorPlace’s Joseph Nograles discussed this question, highlighting Aterian (NASDAQ:ATER), a digital campaign management platform, as a potential new Reddit sensation. As he noted “the Reddit crowd stumbles upon an interesting investment opportunity, and I believe ATER stock is one. The company has been expanding rapidly with revenue growing 62% last year to $185.7 million. And analysts expect revenue to grow another 46% this year.”
Today, ATER stock began attracting some attention on Reddit when one user noticed that like GME, it was up and moving in an almost identical pattern. As of this writing, though, Aterian is actually outpacing GameStop, up 9.29% while the latter is only up by 7.35%. While this isn’t necessarily a reason to drop everything and buy, its certainly worth watching.
Also worth noting is the fact that another popular meme stock, AMC Entertainment (NYSE:AMC) is also in the green this morning, up 3.12% so far.
The Social Scoop
GME stock, meanwhile, is trending on Twitter, in part because it was second in mentions on r/WallStreetBets in the past hour. Almost all tweets today have included both GME and AMC tickers. Most aren’t too specific and are fairly speculative, but one user laid out some specifics and others have been quick to respond.
1- Why: billions of synthetic shares created through a settlement loop and option divorced puts have to be covered eventually. No way around it.
2- How: lock the float. We #BUYLIT & #holdDRS $AMC $GME
— Userofintellect (@userofintellect) October 10, 2021
Others forecasted an optimistic outlook, indicating that they see better days ahead.
$GME not even an hour into trading and we’re up about $13 or 8%
Name a better stock
And to think this is just day 1 😳
— Gavin May (@gavinmayreal) October 11, 2021
As this user notes, though, it’s at least worth watching.
$AMC Q3 and Q4 results will look phenomenal based on the collections from Big releases!!!#AMC #StocksToWatch #AMCSqueeze #AMC100K #AMCtothemoon #AMCTheatres $GME #GME $TSLA $BBIG #AMCSTRO #AMCNOTLEAVING
— PositiveTrader (@otc_to) October 11, 2021
While there’s been plenty of discussion on Reddit since markets opened this morning, most of it is speculative. There haven’t been too many detailed theories offered up, but as one user states, “I think there was a lot of hype about this week and the likelihood of the run up so people might be buying in to capitalize on that.”
That’s as detailed a thesis as social media has to offer this morning. r/WallStreetBets seems to be more focused on the gains that this morning seen from Clover Health (NASDAQ:CLOV) or the losses from Montes Archimedes Acquisition (NASDAQ:ROIV). It’s also worth noting that many Twitter accounts discussing it don’t belong to influencers and have generally low follower counts. While it’s still a good morning for GME stock, it doesn’t seem to be because of any major developments.
Meme stocks across the board are still rising this afternoon, but there’s no clear reason other than the type of mob mentality that comes from digital investment communities getting excited.
On the date of publication, Samuel O’Brient did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.