Meme stock GameStop is once again rallying amidst speculation that Keith Gill, who inspired the epic short squeeze in 2021, may currently have a substantial position in the video game retailer. Gill, known as DeepF——Value on Reddit and Roaring Kitty on YouTube and X, reappeared on social media posting a screenshot of his portfolio that showed he holds 5 million shares of GameStop worth $115.7 million as of Friday’s closing price, along with 120,000 call options with a strike price of $20 that expire on June 21st. The post was shared on Reddit’s r/SuperStonk forum, though it was not independently verified by CNBC. Gill’s return to social media sparked a buying frenzy among amateur traders, propelling GameStop shares to more than double in May alone.
Despite not posting on the infamous WallStreetBets chatroom where he shared all of his trade updates during the height of the GameStop mania over three years ago, Gill’s recent online activity has once again caught the attention of the Reddit trading crowd. On X, he posted a cryptic picture of a reverse card in the game “Uno” that quickly garnered near 30,000 likes. Shortly after his latest posts, shares of GameStop surged more than 19% in Robinhood’s 24-hour exchange on Sunday evening, signaling a possible significant spike when premarket trading begins on Monday. This follows Gill’s initial return to social media three weeks ago, which also fueled a dramatic rally in GameStop and led to the company raising over $900 million in a stock sale.
Keith Gill, a former marketer for Massachusetts Mutual Life Insurance, gained notoriety in 2021 for encouraging retail traders through YouTube videos and Reddit posts to squeeze out short-selling hedge funds in GameStop. The resulting frenzy in the stock forced brokerages like Robinhood to restrict trading as it overwhelmed their clearinghouse margin. Gill’s actions prompted a series of congressional hearings focused on brokers’ practices and the gamification of retail trading. Despite the chaos, GameStop is still facing challenges with its transition to online gaming from brick-and-mortar stores, with investors looking to CEO Ryan Cohen to lead a reinvention of the company.
The resurgence of GameStop driven by Keith Gill’s potential large position in the company highlights the continued influence of retail traders in the stock market. Gill’s social media posts, along with the support of online trading communities, have once again drawn attention to the stock and sparked significant price movements. The GameStop saga exemplifies the power of individual investors to disrupt traditional market dynamics and the impact of social media in shaping investment trends. While the company’s future remains uncertain as it navigates an industry shift towards online gaming, the involvement of influencers like Gill and the online trading community will likely continue to influence the stock’s performance in the near future.
As GameStop continues to attract attention from retail traders and investors, the stock’s volatility is likely to persist, driven by factors such as online sentiment, social media trends, and individual trading activity. The ongoing saga surrounding GameStop, Keith Gill, and the Reddit trading community underscores the evolving landscape of retail investing and the potential for individual investors to challenge institutional players in the market. Whether GameStop can successfully execute its transition to online gaming and leverage the support of influential figures like Gill remains to be seen, but the stock’s recent rallies demonstrate the enduring impact of retail traders in shaping market movements and generating buzz around meme stocks like GameStop.
