Shares of GameStop surged on Monday after a long-dormant Reddit account linked to Keith Gill, the trader known as Roaring Kitty who helped fuel the meme-stock mania of 2021, appeared to show a large stake in the video game retailer.
It was GameStop's second big surge in as many months, a result of social media buzz. The stock price at one point more than doubled in premarket trading, and it closed up nearly 30 percent by midday, adding billions of dollars to the company's market value.
Monday's increase was due to A screenshot uploaded to Reddit The post on Sunday was made by an account linked to Mr. Gill after more than three years of inactivity. The post showed five million shares in GameStop, worth about $116 million, about $30 million in cash and a large number of options that give the holder the right to buy more stock at $20 a share. Market data provider Unusual Whales posted that an event had taken place. Business boom for those options.
What further inflamed the rally was a post made on an X account linked to Mr Gill, containing a photograph. Reverse card from Unocard game. Followers largely interpreted the photo — in line with the cryptic memes that punctuated Mr. Gill’s social media posts in 2021 — as a rallying cry to prop up GameStop’s stock price, which had fallen after a Spike inspired by Roaring Kitty Last month.
GameStop profited from that surge by selling new shares, Raising $933 millionAccording to a recent research note by analysts at Wedbush, the move “prudently” provides GameStop “a greater level of reserves while it struggles to refocus its business and reverse continued operating losses.”
The new posts mark a flurry of activity from Mr. Gill’s accounts, which had been quiet since 2021. The ex-account TheRoaringKitty resumed posting on May 13, with another cryptic meme that was largely interpreted as a pro-GameStop call, followed by dozens of provocative clips from television shows, movies and music videos.
Online sleuths have been debating whether to reinstate the accounts for the past month, with some speculating that Mr Gill may have Sold my X account For a conceptual artist with a history of trolling. While Mr. Gill's exes and Reddit accounts have shown signs of life, His Youtube Channel — where he regularly posted videos talking about his stock recommendations — is also now defunct.
Mr. Gill gained a cult following during the coronavirus pandemic with lively videos and posts arguing that GameStop was undervalued. In 2021, the value of that stock and others, such as AMC Entertainment, soared as armies of small investors joined in and cheered each other on with outrageous memes. The chaos inspired a 2023 film “Stupid money.”