Jim Cramer Tries To Rationalize The Surge In Meme Stocks

GameStop Corp (NYSE: GME) and AMC Entertainment Holdings Inc (NYSE: AMC) surged more than 20% on Tuesday after months of relative calmness following extreme bouts of volatility earlier in the year.

Jim Cramer attempted to rationalize the upside moves in the retail-favored stocks.

What To Know: Best Buy Co Inc's (NYSE: BBY) financial results may be telling of GameStop sales to come, Cramer said Wednesday on CNBC's "Squawk On The Street."

"When you look at the categories that sold well in Best Buy, you start thinking 'wait a second, this is going to translate to GME sales,'" Cramer said. "I think that's absolutely true."

See Also: These GameStop Options Were Up More Than 6,000%

AMC Entertainment is harder to figure out because of the looming COVID-19 delta variant, Cramer noted. The variants aren't stopping people from going to the theaters, he said, adding that the box office numbers are dramatically improving.

GME, AMC Price Action: GameStop has traded as high as $483 and as low as $4.56 over a 52-week period. The stock is down 2.14% at $205.80 at the time of publication.

AMC Entertainment has traded as high as $72.62 and as low as $1.91 over a 52-week period. The stock is up 3.37% at $45.75 at publication time.

Photos: Mike Mozart from Flickr.