‘GameStop Rises in Meme Stock Revival with Return of ‘Roaring Kitty’

GameStop Stock Surges After Social Media Post

GameStop, a video game retailer, experienced a nearly 118% surge in its stock value following a single post by a social media account known as “Roaring Kitty.” This event brought back memories of the meme stock craze from earlier in the decade.

The Rise of Roaring Kitty

Keith Gill, also known as Roaring Kitty, used his social media platform to encourage millions to join the market frenzy, driving stocks like GameStop to unprecedented levels. Gill’s account reemerged on Sunday with a meme that garnered over 14 million views by midday in New York.

The Surge and Market Response

GameStop’s shares had already been on the rise prior to the social media post, increasing by more than 60% leading up to the surge. The stock jumped by as much as 118% in early Monday trading before stabilizing around a 70% increase. This surge indicates a continued interest in equity among retail investors.

Line chart of Share price, $ showing GameStop shares soar

The Meme Stock Phenomenon

GameStop’s meteoric rise in 2021 made it a symbol of meme stock volatility. Roaring Kitty, also known as DeepFuckingValue on Reddit, highlighted the significant short interest in the company, correctly predicting a short squeeze that caught hedge funds off guard.

Market Fallout and Other Targets

The short squeeze on GameStop led to significant losses for hedge funds like Melvin Capital. Additionally, other heavily shorted companies, such as AMC Entertainment and BlackBerry, saw their shares rise on the wave of meme stock mania.

Market Trends and Profitability

Despite the surge in GameStop’s stock, other speculative assets like cryptocurrencies remained subdued. Data indicated a significant short interest in GameStop stock, which reflected market sentiment.

Line chart of Percentage of shares on loan showing Bets against GameStop shares have rebounded

Social Media Buzz and Retail Investors

Roaring Kitty’s social media activity reignited interest in GameStop, sparking discussions on platforms like Reddit. Retail investment trends indicated a resurgence in retail interest in the stock, albeit not at the levels seen during the peak of the meme stock craze.

Read More of this Story at www.ft.com – 2024-05-13 17:31:07

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