The meme stock frenzy of 2021 was reignited with the surprise social media return of the trader nicknamed Roaring Kitty, who helped ignite the frenzy initially. GameStop shares saw a 68% surge after the trader, Keith Gill, shared a meme on X. The surge had nothing to do with the company’s fundamentals but was driven by speculation around the meme shared by Gill. Short sellers betting against GameStop faced $1 billion in mark-to-market losses on Monday.
In response to the surge in GameStop shares, trading platform Robinhood, which had previously suspended purchases of GameStop and other meme stocks during the 2021 frenzy, saw a 7% increase in its shares. AMC Entertainment also saw a 31% increase in its shares, while Reddit shares climbed 13%. The meme shared by Gill depicted a man with a video game console in hand, with a blue arrow and chair, symbolizing a serious market situation. Gill did not immediately respond to requests for comment on the meme he shared.
Despite being one of the key figures in the WallStreetBets subreddit that drove GameStop’s stock surge in 2021, Gill has maintained that he did not intend to stoke the frenzy intentionally. He described himself as a casual daytime trader during a 2021 Congressional hearing and believed that GameStop was an attractive opportunity for investors. Gill testified that he first purchased GameStop stock in 2019 when it was trading around $5 apiece, and added to his position throughout 2020 based on his belief in the company’s potential.
The events surrounding the GameStop short squeeze and the role played by Gill were portrayed in the 2023 movie “Dumb Money,” in which he was played by actor Paul Dano. Gill’s testimony during the Congressional hearing highlighted his belief that the market was oblivious to GameStop’s unique opportunity, and he never anticipated the stock hitting a high of $483 per share in 2021. The resurgence of GameStop’s shares this time around led to multiple circuit breakers being tripped to halt trading temporarily and allow investors to cool off.
Despite social media claims that Robinhood had once again halted GameStop stock purchases, the trading platform denied those claims and stated that the elevated volatility and movement in GameStop triggered market-wide exchange trading limits and halts, affecting all platforms, not just Robinhood. The resurgence of meme stocks like GameStop and AMC Entertainment highlights the continued influence of trader communities on social media in driving share prices based on popularity rather than fundamentals. The story of Roaring Kitty and the meme stock frenzy of 2021 continues to evolve and will be updated as new developments unfold.
