Meme stock trading in companies such as GameStop and AMC once again experienced a surge in popularity over the summer, according to data from platform Capital.com.
The data — based on the trading activity of 33, 500 global traders between 18 June and 18 September this year — shows GameStop (GME) was the third most traded stock on the platform over the summer.
AMC Entertainment Holdings Inc (AMC) was also among the top 10 most traded stocks over the same period.
Both listed companies rallied more than 100% in May after investor and social media personality Keith Gill, aka “Roaring Kitty”, posted on social media platform X for the first time since the pandemic, encouraging more meme stock trading before prices returned to more subdued levels.
Both Game and AMC were among the three companies traded — along with Amazon — with the highest share of long positions, at 86% and 73% respectively, meaning traders were overwhelming buyers of the stocks.
However, meme stock trading did not bring much in the way of gains for Capital.com users. Less than half (44%) of all AMC trades during this period were profitable, while GME trades saw a modest 51% profit rate.
Capital.com senior market analyst Daniela Sabin Hathorn said: “After the initial hype in May, some traders maintained interest in these highly speculative meme stocks throughout the summer, despite waning momentum.
“While AMC and GME have offered some intraday trading opportunities, they have not delivered long-term price appreciation, and the low use of stop-loss protection indicates traders were looking to exploit short-term volatility rather than hold for extended periods. This reinforces the importance of incorporating stop-loss protection, especially in a highly dynamic market environment.”
Both stocks first came to prominence on social media as users of platforms such as Reddit and Twitter (now X) orchestrated a short squeeze against the outsized short positions held by hedge funds in both companies.
Despite heightened meme stock trading, a greater proportion of traders profit from bets on large cap stocks Tesla, Apple, Nvidia, Coinbase and Advanced Micro Devices.
Tesla was the most profitable trade among Capital.com users, with 60% of investors making net gains, while Coinbase and Apple came 2nd and 3rd with profit rates of 59% and 57% respectively.
“Tesla’s ability to keep price momentum high has kept it at the top of the most traded stocks list throughout the year. The stock is known for its dynamic price moves, with another significant comeback in August and September,” Hathorn said.
“Meanwhile, Apple remains promising, despite the August pullback driven by market jitters following weaker-than-expected US economic data.”
| Most Profitable Equity Trades of the Summer | Profit rate |
|---|---|
| Tesla | 60% |
| Coinbase | 59% |
| Apple | 57% |
Source: Capital.com
Robin has more than six years of experience as a financial journalist, most of which were spent at Citywire, and covers the latest developments in the investing, trading and currency transfer space. Outside of work, he enjoys reading literature and philosophy and playing the piano.
You can contact Robin at robin@goodmoneyguide.com
