GameStop, AMC Shares Soar as Meme Stock Trader Resurfaces After 3-Year Hiatus
GameStop shares experienced a remarkable surge on Monday following the unexpected return of the trader, known as Roaring Kitty, whose social media posts were instrumental in fueling the meme stock frenzy of 2021. The surge, which saw GameStop shares rise by 74%, was attributed to a meme shared by Keith Gill, also known as Roaring Kitty, marking his first post on X in three years.
Gill’s post featured a cartoon depicting a man with a video game console, suggesting a serious tone amidst market activities. The surge in GameStop shares, along with a 67% increase in AMC Entertainment shares and a 9% climb in Reddit shares, resulted in significant mark-to-market losses for short sellers, totalling approximately $1 billion.
The meme shared by Gill triggered multiple circuit breakers, temporarily halting trading to allow investors to adjust to the heightened volatility. Despite rumours on social media, Robinhood clarified that it had not suspended GameStop stock purchases, attributing the halts to market-wide exchange trading limits.
Gill, also known as “Deepf—-ingvalue” on Reddit, played a prominent role in the WallStreetBets subreddit, where traders orchestrated the GameStop short squeeze, driving remarkable returns in the stock and targeting short sellers. During a Congressional hearing in 2021, Gill testified that his intent was not to manipulate the market but to highlight what he perceived as an attractive investment opportunity in GameStop.
Gill’s actions and the subsequent frenzy around GameStop and other meme stocks have since been depicted in the 2023 movie “Dumb Money,” where he was portrayed by actor Paul Dano.
