GameStop, the US video game retailer, has made headlines once again as it announced that it has raised over $2 billion in its second sale in a month. This rally was led by the investment influencer Keith Gill, also known as Roaring Kitty, whose first YouTube livestream in three years garnered significant attention.
The company’s shares surged by almost 23% on Tuesday, doubling in value over the last six months. GameStop’s popularity among retail investors during the pandemic has helped popularize the concept of meme stocks – stocks that gain traction through platforms like Reddit.
These meme stocks, including GameStop, AMC, and Blackberry, have seen their prices fluctuate dramatically as retail investors clashed with professional Wall Street firms. GameStop’s recent success has been fueled by the sale of 75 million shares, raising a total of $2.137 billion. In the past month alone, the company has raised over $3 billion through share sales, boosting its market value.
Keith Gill’s involvement in GameStop’s rise to fame cannot be understated, as his online following played a crucial role in inspiring investors to back the struggling retailer. This unexpected surge in GameStop’s shares created a financial squeeze on Wall Street firms that had bet against the company.
Despite GameStop’s current trading price of around $30 per share, well below its record high of $48 earlier in June, the company’s recent success is a testament to the power of retail investors in today’s volatile market.
