GameStop, the video game retailer, experienced a nearly twofold increase in its stock value on Monday, ignited by a solitary post from a social media persona known as “Roaring Kitty,” triggering a frenzy reminiscent of the meme stock craze from the early 2020s.
“Roaring Kitty” is the moniker of Keith Gill, a day trader whose online content during the meme-stock surge encouraged millions to join the market, subsequently propelling stocks like GameStop to unprecedented heights.
Gill’s social media account, dormant since June 2021, sprang back to life on Sunday with a meme featuring a man leaning forward in his chair, an image GameStop itself had shared on its own social media platform earlier in February. By midday in New York, the post had garnered over 14 million views.
GameStop’s shares, which had already surged over 60 percent between May 1 and May 10, skyrocketed as much as 119 percent during early trading on Monday, concluding the session with a 74 percent increase.
The surge on Monday suggests that “there’s still a cult of equity” among some retail investors, remarked Kevin Gordon, a senior investment strategist at Charles Schwab.
GameStop emerged as an emblem of the meme-stock frenzy when its price surged by as much as 2,400 percent in 2021.
Gill, also known as DeepFuckingValue on Reddit, gained attention in 2020 for highlighting significant bets against GameStop, accurately predicting that a price surge could compel short sellers to cover their substantial short positions by buying the stock.
One of the most notable casualties of this short squeeze was the New York hedge fund Melvin Capital, which saw a 53 percent decline in its value in January 2021. Gill’s former employer, insurer MassMutual, was subsequently fined $4 million for inadequate oversight of his social media activities.
Investors in meme stocks also turned their attention to other heavily shorted companies in 2021, such as AMC Entertainment and BlackBerry. Both companies experienced gains on Monday, with AMC shares closing 78 percent higher and BlackBerry up by 7 percent.
However, the frenzy wasn’t uniform across all fronts, as noted by Gordon, who highlighted that prices for cryptocurrencies and other speculative assets remained subdued on the day.
Data from S&P Global indicated that 29 percent of GameStop shares were on loan as of Friday, reflecting substantial short interest in the stock.
For the fiscal year ending February 3, 2024, GameStop reported a net profit of $6.7 million, a stark improvement from the previous year’s net loss of $313.1 million. Net sales amounted to $5.3 billion, down from $5.9 billion in 2022.
GameStop, the video game retailer, experienced a nearly twofold increase in its stock value on Monday, ignited by a solitary post from a social media persona known as “Roaring Kitty,” triggering a frenzy reminiscent of the meme stock craze from the early 2020s.
“Roaring Kitty” is the moniker of Keith Gill, a day trader whose online content during the meme-stock surge encouraged millions to join the market, subsequently propelling stocks like GameStop to unprecedented heights.
Gill’s social media account, dormant since June 2021, sprang back to life on Sunday with a meme featuring a man leaning forward in his chair, an image GameStop itself had shared on its own social media platform earlier in February. By midday in New York, the post had garnered over 14 million views.
GameStop’s shares, which had already surged over 60 percent between May 1 and May 10, skyrocketed as much as 119 percent during early trading on Monday, concluding the session with a 74 percent increase.
The surge on Monday suggests that “there’s still a cult of equity” among some retail investors, remarked Kevin Gordon, a senior investment strategist at Charles Schwab.
GameStop emerged as an emblem of the meme-stock frenzy when its price surged by as much as 2,400 percent in 2021.
Gill, also known as DeepFuckingValue on Reddit, gained attention in 2020 for highlighting significant bets against GameStop, accurately predicting that a price surge could compel short sellers to cover their substantial short positions by buying the stock.
One of the most notable casualties of this short squeeze was the New York hedge fund Melvin Capital, which saw a 53 percent decline in its value in January 2021. Gill’s former employer, insurer MassMutual, was subsequently fined $4 million for inadequate oversight of his social media activities.
Investors in meme stocks also turned their attention to other heavily shorted companies in 2021, such as AMC Entertainment and BlackBerry. Both companies experienced gains on Monday, with AMC shares closing 78 percent higher and BlackBerry up by 7 percent.
However, the frenzy wasn’t uniform across all fronts, as noted by Gordon, who highlighted that prices for cryptocurrencies and other speculative assets remained subdued on the day.
Data from S&P Global indicated that 29 percent of GameStop shares were on loan as of Friday, reflecting substantial short interest in the stock.
For the fiscal year ending February 3, 2024, GameStop reported a net profit of $6.7 million, a stark improvement from the previous year’s net loss of $313.1 million. Net sales amounted to $5.3 billion, down from $5.9 billion in 2022.
