New York, NY – Investors brace for an unpredictable start to trading as GameStop Corp.’s shares are expected to experience significant fluctuations following a Reddit user’s post revealing a large position in the stock. The Reddit user, known as DeepF— Value, disclosed a potential $116 million stake in GameStop, causing excitement and uncertainty among traders.
The screenshot shared by DeepF— Value showed the purchase of five million shares at $21.27 per share, along with option positioning. While the accuracy of the information could not be confirmed, it generated a buzz in the market. GameStop’s stock surged over 19% to $27.58 during Sunday trading on Robinhood, where certain shares can be traded 24 hours a day, hitting the platform’s upper limit.
On Twitter, DeepF— Value, also known as Roaring Kitty, posted a picture of a UNO Reverse card, a symbol often used by players to change the game’s dynamics. The post quickly gained over 3.2 million views within hours of being shared. DeepF— Value, who played a key role in rallying day traders on Reddit last year, had been relatively quiet on social media until recently when he hinted at a possible return to active trading.
GameStop’s shares have faced significant volatility since DeepF— Value’s latest activity on social media, with a drop of more than 50% following his mid-May post. The stock had previously experienced a dramatic surge of over 2,000% earlier in 2021, drawing attention to the phenomenon of meme stocks and their impact on the market.
As investors await the opening bell, the influence of social media on stock trading continues to be a significant factor to watch in the financial markets. The potential actions of individual users like DeepF— Value could once again shape the direction of GameStop’s stock and impact broader market trends. Stay tuned for updates on this developing story as trading resumes.