The man at the center of the pandemic meme stock craze, Keith Gill, also known as “Roaring Kitty,” made a surprising return to the online world after three years, causing a frenzy in the stock market. Gill, who gained fame for his role in the GameStop saga of 2021, posted an image on social media and a YouTube video that reignited the interest in the quirky and volatile shares of GameStop.
GameStop, a struggling video game retailer, was on the brink of bankruptcy in 2021 as big Wall Street hedge funds were betting against its survival. However, Gill and a group of retail investors, inspired by his bullish stance on the company, bought up GameStop shares, triggering a short squeeze that led to a massive increase in the stock price.
On Monday, GameStop shares more than doubled, closing up 74%, marking the biggest intraday trading jump since the meme craze of 2021. Other meme stocks like AMC Entertainment Holdings Inc. and Koss Corp. also saw significant spikes in their share prices. The trading in GameStop was so volatile that it had to be halted multiple times during the day.
Gill became a hero to small investors in 2021 when his posts on Reddit’s Wallstreetbets forum challenged the big hedge funds and led to a significant increase in GameStop’s stock price. The movie “Dumb Money” was even made based on his story. Despite facing scrutiny from lawmakers for his role in the meme stock craze, Gill maintained that he simply liked the stock.
The resurgence of meme stocks like GameStop and AMC Entertainment Holdings Inc. following Gill’s online appearance has reignited the debate about the power of retail investors in the stock market. The dynamics of the market have shifted since 2021, with fewer short positions against GameStop’s tradable shares, indicating a change in sentiment towards these once heavily shorted companies.
As the meme stock craze continues to captivate the market, the future of companies like GameStop remains uncertain. However, for now, Roaring Kitty’s return to the online world has once again set the stock market abuzz with excitement and speculation.
