London, England – The frenzy around meme stocks continues as GameStop’s shares surged by 21% on Monday, fueled by renewed interest from traders. This surge comes after a Reddit post by Keith Gill, also known as “Roaring Kitty,” revealed that he had purchased nearly $116 million worth of GameStop stock. The stock initially rose by as much as 75% before leveling off later in the day.
Meme stocks refer to stocks that experience volatile price movements due to their popularity among online trading communities on social media platforms. This trend began with GameStop in 2021 and has since extended to other companies like AMC Entertainment and Bed, Bath, and Beyond, which has since filed for bankruptcy.
In addition to GameStop, shares of AMC Entertainment also saw a significant increase of nearly 13% during morning trading on Monday. Keith Gill, a prominent figure on the WallStreetBets subreddit, previously drove sharp increases in GameStop’s stock in 2021 as retail investors targeted short-sellers who had bet on the stock’s decline.
Gill’s recent meme post on another platform led to a surge in GameStop’s shares last month, demonstrating the power of social media in influencing stock prices. The meme, depicting a man holding a video game console with a caption suggesting seriousness, quickly gained traction among online investors.
During his testimony before the US Congress in 2021, Gill described himself as a casual trader and emphasized that his actions were not intended to manipulate the market but rather to highlight investment opportunities. Short-sellers, who profit from betting on stock declines, were targeted by retail investors who sought to drive up GameStop’s stock price.
Overall, the continued fluctuations in meme stocks like GameStop and AMC Entertainment underscore the influence of online communities on financial markets and the evolving landscape of stock trading in the digital age. Investors and market analysts alike continue to monitor these developments closely for potential opportunities and risks in the market.