GameStop Corp. (NYSE: GME) stock surged about 75% in intraday trading Monday following the return of meme-stock guru Keith Gill, widely known as Roaring Kitty, to social media after a hiatus of three years.
In a resurgence reminiscent of the historic meme stock craze of 2021, Keith Gill, famously known as Roaring Kitty, has returned to X (formerly Twitter), igniting a rally in GameStop (GME) and AMC Entertainment (AMC) shares. Gill, a figurehead of the meme stock movement, had previously retreated from social media after capturing global attention for his role in the frenzy.
On Sunday night, Gill made his first post on X since June 2021, signaling his return to the platform. The image in the post showed a man engrossed in a video game, a scene strikingly similar to a GameStop post from February. The only difference was the color change from blue to red in the version of Gill, affecting the arrow and chair. Know Your Meme interprets the meme as conveying a sense of seriousness.
The 2021 meme stock frenzy, led by Gill, catapulted GameStop (NYSE: GME) and AMC Entertainment (NYSE: AMC) to unprecedented peaks, driven by his posts and videos on X, Reddit (NYSE: RDDT), and YouTube.
Joining Reddit in 2019, the former MassMutual employee had been actively posting educational investment content on YouTube since 2015. He made a significant investment of $53,000 in GME stock in 2019, which later skyrocketed to nearly $48 million at its peak in January 2021, catapulting him into the mainstream spotlight.
The comeback of Gill showered with enthusiasm from retail investors, many of whom celebrated with comments like “he’s back” and “game on,” signaling renewed optimism within the meme stock community.
Roaring Kitty’s Return Sparks GameStop Surge
Following Gill’s return, GameStop stock surged around 74.5% on Monday, prompting multiple trading halts on the NYSE due to volatility. Despite GameStop shares being relatively flat for the year, closing at $17.46 on Friday, Roaring Kitty’s comeback injected fresh momentum into the stock, capturing the attention of both retail and institutional investors.
Similarly, theater chain AMC Entertainment witnessed a significant rally of 78.4% on Monday, fueled by Roaring Kitty’s resurgence and renewed enthusiasm among retail investors. While AMC stock has faced challenges in 2024, including a nearly 53% decline through Friday, Gill’s return provided a much-needed boost, driving shares higher from near-record lows.
The surge in GameStop and AMC Entertainment stocks also inflicted significant losses on short sellers, with data company S3 Partners reporting mark-to-market losses of $1 billion for those betting against GameStop on Monday. Short sellers aim to profit from declining stock prices by borrowing shares, selling them, and repurchasing them at lower prices.
GameStop Corp. (NYSE: GME) Stock Price Action
GME stock soared 74.40% to close at $30.45 on Monday. Its value increased by 86.70% this week. Trading activity has witnessed 187,241,728 (187.24 million) shares changing hands, well above the average daily volume of 10.05 million.
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