New York, NY – GameStop, a US video game retailer, has successfully raised over $2 billion in its second share sale in a month. This surge in funding came after a rally led by investment influencer Keith Gill, also known as Roaring Kitty, who has been a key figure in the company’s recent success. The announcement of this remarkable achievement follows Mr. Gill’s first YouTube livestream in three years, underscoring the impact of online influencers in the world of finance.
The company’s shares saw a significant 23% increase on Tuesday and have doubled in value over the last six months. GameStop’s remarkable rise in popularity among retail investors during the pandemic has led to the creation of meme stocks, characterized by shares gaining traction through platforms like Reddit. These meme stocks often attract attention as they are typically targeted by professional investors, such as hedge funds, resulting in high levels of volatility in the market.
In the past month alone, GameStop has raised over $3 billion through share sales, reflecting a substantial growth in its stock market value. This includes the $933.4 million raised from selling 45 million shares just last month. The surge in GameStop’s popularity can be traced back to a Reddit post on June 2nd, where a user tied to Mr. Gill claimed they owned 5 million GameStop shares, valued at over $100 million.
Keith Gill gained fame in 2021 for mobilizing a large group of online investors to support GameStop, causing a significant spike in the company’s shares and placing financial pressure on Wall Street firms that had bet against the retailer. Other meme stocks like AMC and Blackberry also experienced similar surges in share prices during the pandemic.
While GameStop’s shares are currently trading around $30, significantly lower than the record high of $48 reached earlier in June, the company’s success in fundraising and market value growth highlights the power of retail investors and online influencers in shaping the financial landscape. GameStop’s journey serves as a testament to the evolving dynamics of the stock market and the influence of social media in investment decisions.