Cramer says meme stock backlash forced round-the-clock security after 2021 GameStop rally
In a Bloomberg Odd Lots interview, the CNBC host recalled pulling out his catheter and urging investors to cash out as GameStop and other meme stocks surged during the 2021 frenzy.
Jim Cramer said on Bloomberg s Odd Lots podcast that the backlash after he criticized the GameStop rally during the 2021 meme stock frenzy was intense enough to require round the clock security. He described being in recovery from back surgery when GameStop shares jumped fourfold in a matter of days and said he felt the rise was almost unreal. Cramer said he pulled out his catheter and immediately contacted CNBC colleagues Carl Quintanilla and David Faber. From the hospital he later urged retail investors to cash out, advising viewers to take the home run rather than chase a grand slam.
The remarks come after GameStop briefly topped four hundred dollars in January 2021 before the stock cratered to around ten dollars by mid February as the short squeeze unraveled. Cramer, a former hedge fund manager, said the backlash from retail investors was swift and fierce, leading him to hire private security. The episode occurred during the height of the pandemic era meme stock craze that saw Reddit traders drive GameStop, AMC and other struggling companies to record highs.
As of September this year, GameStop has remained volatile. The stock was flat for the year overall but prone to sudden spikes tied to social media momentum, with Monday s session closing near twenty seven dollars, down about fifteen percent for the year. The rallies have faded as earnings and new stock offerings have tempered enthusiasm, though a devoted retail following persists. The episode and the broader meme stock era have been widely documented, with reports noting that trading volume and options activity tend to surge during spikes that follow online campaigns.