GameStop Stock Surges Over 90% Following Return of “Roaring Kitty”
On Monday, May 13, 2024, GameStop (GME) stock saw a sudden resurgence, with shares soaring over 90% after Keith Gill, also known as “Roaring Kitty,” made a comeback to social media. Gill, a prominent figure in the 2020-2021 meme stock frenzy, broke his nearly three-year silence with a post on the social media platform X on Sunday evening.
Key Points About Keith Gill’s Return and GameStop Stock Surge
- Keith Gill, aka “Roaring Kitty,” returned to social media after a 3-year break, leading to GameStop (GME) stock surging over 90% on Monday morning.
- GameStop shares experienced multiple halts due to volatility following Gill’s posts on X, previously known as Twitter.
- Gill played a significant role in the 2020-2021 meme stock frenzy, having initially invested $53,000 in GameStop in 2019, which later ballooned to an estimated $48 million at the peak of the surge.
- The online retail trading community, especially on the WallStreetBets subreddit, expressed enthusiasm about Gill’s return and the subsequent increase in GameStop’s stock price.
Gill’s comeback post featured a meme depicting a person engrossed in playing video games, leaning forward in their chair to signify a more serious approach to the game.
Market Response to Gill’s Return and GameStop Stock Movement
This enigmatic post triggered excitement among retail traders, particularly those in the WallStreetBets online community, which played a vital role in the initial GameStop surge. Here’s how the market reacted:
- GameStop shares surged as soon as the market opened on Monday, leading to multiple trading halts due to extreme volatility.
- Gill followed up his initial post with two more, featuring short videos that hinted at his absence and return, using clips from popular movies and TV shows like “Ferris Bueller’s Day Off” and “Breaking Bad.”
- Prior to becoming a meme stock sensation, Gill had invested $53,000 in GameStop shares in 2019, believing the retailer was undervalued.
- At the peak of the surge, his investment was valued at around $48 million. Alongside figures like activist investor Ryan Cohen, now GameStop’s CEO, Gill’s enthusiasm for the stock fueled online excitement and price action.
- The WallStreetBets community celebrated Gill’s return, with top posts on the subreddit discussing his recent activity and its impact on GameStop’s stock price.
Despite the significant surge, GameStop’s shares remained below their all-time high of $120.75 reached on January 28, 2021. However, the stock has more than doubled in value since the beginning of May, trading at $28.24 as of 11:45 a.m. ET on Monday.
Outlook on Gill’s Return and GameStop’s Future
As news of Gill’s return and GameStop’s stock performance spreads, it remains to be seen whether this sudden resurgence will have a lasting impact similar to the original meme stock frenzy. Here’s what to watch for:
- Market participants and regulators will closely monitor the situation to determine if this uptick is a temporary blip or the start of another market disruption driven by retail traders.
Hot Take: The Future of GameStop Stock and Retail Trading
Keep an eye on how the market responds to the resurgence of GameStop’s stock following Keith Gill’s return, as it could signal a new wave of activity in the retail trading space.
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