Meme stocks are roaring again. This time may be different

abcnews.go.com:

GameStop and other meme stocks are roaring once again, surging to dizzying heights suddenly and sharply

NEW YORK — NEW YORK (AP) — Meme stocks are shaking Wall Street once again. That shouldn't be much of a surprise.

Ever since bands of smaller-pocketed and novice investors began taking stock prices of downtrodden companies to breathtaking heights three years ago, the potential for more flareups has been obvious.

Some things are different this time. The biggest change from the initial supernova for GameStop's stock is how the experience of 2021 makes this all feel familiar. That familiarity, plus some changes in the market, should allow Wall Street to more easily digest the sharp movements, experts say. GameStop in 2021 put securities markets' capacity and resilience to a test that «few could have anticipated,» the staff of the U.S. Securities and Exchange Commission said in a report later that year.

But some things remain firmly the same. Chief among them is the risk of losing everything that accompanies the potential to make fast money playing such volatile stocks. Here’s a look at what’s going on:

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GameStop, the granddaddy of meme stocks, has soared suddenly and sharply. It jumped 60.1% Tuesday after surging 74% the day before. Other meme stocks from the pandemic era are moving just as radically. AMC Entertainment, the movie theater operator, leaped 32% Tuesday.

Financial analysts and professional investors who care mostly about numbers like profits, cash flow and interest rates would say no. GameStop's financial prospects did not change over the weekend, before the dizzying ascent of its stock price. The video-game retailer did post a small profit in its most recent fiscal year following five years of big