GameStop shares soared on Monday, with the stock price rising more than 70% in the first 45 minutes of trading.
No need to check the calendar. It’s not 2021. But the reason for the surge was the same as the year the retailer became the first meme stock: an individual investor named Roaring Kitty.
Keith Gill, who has remained silent on social media for the past three years and whose advocacy for GameStop stock has led to a massive rally in the stock,posted the image on Sunday. And this was enough to mobilize an army of memes.
The volatility led to stock trading being halted several times early Monday morning. GameStop was up 86% at $32.50 in morning trading after rising to $38.20 throughout the day.
The image showed a man sitting forward in a chair, a meme that gamers often use when things get serious. The post was followed by a YouTube video praising GameStop that was filmed years ago.
Gill has not resumed posting on Reddit, where he was frequently followed on r/WallStreetBets.
The stock is still well below its 2021 highs, when the price hit $483, but within minutes of trading opening it was near its 52-week high. GameStop shares are up more than 60% year to date. That’s despite reporting fourth-quarter earnings in late March that were well below analysts’ expectations, with revenue of just $1.79 billion, down nearly $500 million from a year earlier.
The return of Gill, who inspired the film Dumb moneyHowever, he throws a hand grenade at analyst forecasts. And his loyal fans celebrated his return.
Look who’s back đ
Hedge funds react… đ¤ https://t.co/GCHFbgAzBK pic.twitter.com/Y39ldHlydB
â JustDario đââď¸ (@DarioCpx) May 13, 2024
3 years ago this man changed the world and now he’s back
Buckle up https://t.co/OAejjBtB5V pic.twitter.com/2MfNltwyUK
â Greg (@greg16676935420) May 13, 2024
I’ll tell my kids it was Warren Buffett. pic.twitter.com/7HVOVqurMG
â Douglas A. Boneparth (@dougboneparth) May 13, 2024
ONLY IN: @TheRoaringKitty gained 100 thousand subscribers in less than 24 hours after returning to đ.
We like the account… pic.twitter.com/ZoE5enOuKi
â Radarđ¨ (@RadarHits) May 13, 2024
As with GameStop’s recent rally, some buyers appeared to be targeting short sellers who were betting against the company. Research firm Ortex said rising stock prices had led to short sellers. loss of more than $800 million from the beginning of May.
The bigger question, of course, is whether investors will have the patience for a real rally in meme stocks this time. The last time Gill led GameStop, most retail investors were working from home as the pandemic kept them from working. Many of them appear to have already returned to the office at this point, which may interfere with their trading habits.