GameStop shares soar 12% premarket to continue meme stock rally from Tuesday

GameStop Corp. shares
GME,
+11.88%
rallied 12% premarket Wednesday and pulled other meme stocks higher with them, continuing themove that started Tuesday amid bullishness on Reddit. A Reddit post by user Thump4 that went up early Tuesday morning on subreddit WallStreetBets proposed that GameStop’s stock was trading at a 58.2% discount to its 15-month fair value. The user came to that conclusion based on the stock’s implied volatility and some options projections on contracts that suggested a calls-to-puts ratio of almost 2 to 1 into 2024. The post sparked a rally that swept up AMC Entertainment
AMC,
+4.05%,
Bed Bath & Beyond and Hycroft Mining Holding Corp.
HYMC,
+0.61%.
The latter has been on a tear since AMC Chief Executive Adam Aron announced an investment in the Nevada-based gold and silver mining company. AMC was up 4.2% premarket, Hycroft was up 11% and Bed Bath & Beyond was up 1.9%.