GameStop’s shares saw a significant increase on Monday due to a post from the long-dormant Reddit account associated with Keith Gill, known as Roaring Kitty. This caused the stock to more than double in premarket trading, adding billions to the company’s market value. The post revealed a holding of five million GameStop shares worth nearly $116 million, along with a large number of options. The surge was also fueled by a post featuring an image of a reverse card from Uno, interpreted as a call to boost GameStop’s stock price.
GameStop had previously benefited from a rally inspired by Roaring Kitty, selling new shares and raising $933 million. This move was seen by analysts as a prudent step to increase reserves and help the company refocus its business amidst continuing losses. The recent flurry of activity on Mr. Gill’s previously quiet accounts has reignited speculation and debate among online sleuths, with some suggesting that his accounts may have been sold to a conceptual artist.
Mr. Gill had gained a following during the pandemic for his lively videos arguing that GameStop was undervalued. In 2021, stocks like GameStop and AMC Entertainment saw a surge in value as small investors joined forces and shared memes in support of their trades. This frenzy inspired the 2023 film “Dumb Money.” Despite the recent activity on his X and Reddit accounts, Mr. Gill’s YouTube channel remains inactive, where he used to post videos discussing his stock recommendations.
The new posts from Mr. Gill’s accounts come after a long period of inactivity, adding to the speculation surrounding his involvement in GameStop’s recent rally. The mysterious and cryptic nature of his posts, including the Uno card image, have once again stirred excitement among followers and investors. The surge in GameStop’s stock price has once again put the video game retailer in the spotlight, prompting renewed interest in the company’s future prospects and potential for growth.
The market data provider Unusual Whales noted a spike in trading for the options associated with Mr. Gill’s GameStop holdings, indicating increased activity and interest in the stock. The impact of social media and online influencers on stock prices has been a major theme in recent years, with platforms like Reddit and Twitter playing a significant role in shaping market movements. The resurgence of GameStop’s rally highlights the power of online communities and individual investors in driving stock prices and market trends.
