GameStop Heads Meme-Stock Rally. It’s Still a Short-Squeeze Hope.

GameStop GME +4.62% shares were soaring early Wednesday. Its surprise profit sent other meme-stocks climbing, too, underlining GameStop’s central role for retail investors still hoping to benefit from backing companies that are the targets of bearish bets.

GameStop (ticker: GME) stock was up 40% in premarket trading after it returned to profit for the first time since early 2021. It also boosted AMC Entertainment Holdings AMC +3.28% (AMC), up 10% in premarket trading, and Bed Bath & Beyond BBBY +0.98% (BBBY), up 9%.