New York – The unexpected resurgence of the trader known as Roaring Kitty, a key figure in the meme stock frenzy that unfolded in 2021, led to a significant surge in GameStop shares on Monday. This remarkable increase in stock value was not influenced by the company’s financial situation but rather by a cartoon character posted by Roaring Kitty on social media platform X.
GameStop shares saw a dramatic 74% rise after Keith Gill, also known as Roaring Kitty, shared a meme for the first time in three years on his account. The shares had initially skyrocketed by over 110% and were temporarily halted multiple times due to extreme volatility on Monday morning.
Short sellers incurred significant losses amounting to $1 billion after betting against GameStop on Monday, according to data from S3 Partners. Short sellers engage in borrowing shares, selling them, and repurchasing them at a lower price in hopes of making a profit.
Following the surge in GameStop shares, other meme stocks also experienced notable increments, with AMC Entertainment seeing a 78% rise and Reddit shares climbing approximately 9%. Additionally, trading platform Robinhood Markets, which previously suspended purchases of GameStop and AMC stocks during the 2021 frenzy, observed a 4% increase in its shares.
The image shared by Gill portrayed a man leaning forward in a chair while holding a video game console. This image, which had previously been posted by GameStop with a blue arrow and chair, now featured red elements in Gill’s rendition. The meme is interpreted as conveying a sense of seriousness.
Despite the significant impact he had on GameStop’s stock value, Gill, also known as “Deepf—-ingvalue” on Reddit, asserted during a 2021 Congressional hearing that his intention was not to fuel the GameStop frenzy but rather to identify a lucrative investment opportunity for investors.
Gill’s involvement in the GameStop phenomenon was further explored in the 2023 movie “Dumb Money,” where he was portrayed by actor Paul Dano. The film depicted the events leading up to and during the GameStop short squeeze, shedding light on the complexities of the stock market and its participants.
As the stock market continues to fluctuate, investors and traders alike remain vigilant, navigating the dynamic landscape of meme stocks and the influence of social media on market trends. Despite the uncertainties and risks involved, individuals like Gill continue to play a pivotal role in shaping the narrative of modern-day trading and investment practices.