New York City – GameStop stock experienced a surge of as much as 110% on Monday, prompting multiple halts due to volatility. This significant increase came after “Roaring Kitty,” renowned for his role in the meme stock frenzy, made his first online post since 2021. The stock reached over $30 per share during the trading day, marking a substantial rise of about 60% over the past two weeks.
“Roaring Kitty,” also known as Keith Gill, gained prominence on platforms like WallStreetBets subreddit and YouTube for his optimistic outlook on GameStop. His recent post on X, previously Twitter, featured a meme of a focused video gamer and garnered over 81,000 likes and 9,000 comments. Gill’s last post on the platform dates back to June 2021.
Gill had previously shared his insights on GameStop’s potential for growth, culminating in his testimony before Congress regarding the January 2021 short squeeze instigated by retail traders. Data from S3 Partners reveals that GameStop’s short interest stands at approximately 24% of the float.
Following GameStop’s surge, other meme-related stocks also experienced increases on Monday. AMC, the theater chain operator, saw a gain of up to 50%, while Trump Media & Technology recorded an 8% increase. Analysts anticipate a rough road ahead for short sellers in these stocks, according to Ihor Dusaniwsky, S3 Partners’ managing director.
The recent uptick in meme-related stocks is viewed by some as a healthy sign of risk appetite in investments, as noted by Yahoo Finance’s Jared Blikre. Despite concerns in the past, the current surge is seen as a positive indicator rather than a cause for alarm.
Overall, GameStop’s resurgence and the concurrent rally in other meme stocks showcase the ongoing influence of retail traders and social media on stock market dynamics. The volatility and unpredictability in these stocks reflect a changing landscape where traditional market trends may not always hold.