The fervor surrounding meme stocks refuses to wane as GameStop shares leaped by 21% on Monday, propelled by a disclosure from prominent stocks influencer Keith Gill, widely recognized as “Roaring Kitty,” revealing a substantial investment in the company totaling nearly $116 million.
Gill’s resurgence into the spotlight came through a Reddit post, marking his first activity on the platform in over three years, reigniting memories of the social media-driven hype that enveloped GameStop (GME) shares back in its heyday.
Meme stocks, characterized by erratic fluctuations driven by their popularity within online trading communities, have remained in the limelight since the GameStop phenomenon of 2021, extending its influence to other entities like AMC Entertainment (AMC) and Bed, Bath and Beyond, the latter of which has since faced financial turmoil, having filed for bankruptcy.
The ripple effects of Gill’s actions were palpable last month as well when he shared a meme on X, featuring a figure leaning forward in a chair while clutching a video game console, a move reminiscent of GameStop’s own cartoonish portrayal from February. This gesture, interpreted as a signal of intensifying stakes, according to the website Know Your Meme, contributed to a surge in GameStop’s shares.
Gill, a prominent figure within the WallStreetBets subreddit—a platform where Reddit users congregate to discuss trading strategies—was instrumental in the astronomical surge of GameStop’s stock in 2021. Retail investors, galvanized by his posts, clashed with short-sellers, who had bet on GameStop’s downfall.
Short-selling, a strategy employed by investors to profit from the decline in a company’s stock price, involves borrowing shares, selling them, and repurchasing them at a lower price.
