Keith Gill, also known as “Roaring Kitty,” recently made a comeback on the social platform X after three years. His return sparked a surge in the prices of some meme stocks, including GameStop, at the opening bell on Monday. Gill posted an image of a man sitting forward in his chair, along with a YouTube video summarizing the bull case for GameStop. This move reignited interest in GameStop, a struggling video game retailer that was revitalized by Gill and other retail investors in 2021, leading to a significant increase in its shares.
The meme stock craze initiated by Gill on Reddit’s Wallstreetbets subreddit pitted small retail investors against large hedge funds that were shorting GameStop’s stock. In 2021, retail investors managed to drive up GameStop’s shares by over 1,000% and similarly boosted other meme stocks like AMC Entertainment Holdings Inc. AMC saw a 2,300% increase in the same year. The resurgence of meme stocks early Monday sent GameStop’s shares up by nearly 70% and AMC Entertainment Holdings Inc. by 23%. Other companies like Koss Co., BlackBerry, and Bed, Bath & Beyond also experienced spikes in their stock prices.
Trading in GameStop was halted multiple times on Monday due to extreme volatility, showcasing the impact of the meme stock frenzy. While some meme stocks had already been climbing higher, the return of interest driven by Gill further fueled the excitement around these stocks. GameStop’s shares had already risen by 57% this month, and AMC had experienced a 10% increase over the past 30 days. Despite his disappearance from messaging boards after posting a video of kittens back in 2021, Roaring Kitty’s influence on meme stock trading is undeniable and has captured the attention of many investors and the media.
The revival of meme stocks like GameStop and AMC Entertainment Holdings Inc. highlights the power of retail investors in influencing stock prices and challenging traditional hedge funds. The movement led by Gill and others showcased the impact of social media platforms on stock trading and brought attention to the potential for regular individuals to disrupt financial markets. The volatile nature of meme stocks suggests that the trend may continue to captivate investors and shape the future of trading in the stock market. The story of Roaring Kitty and the meme stock craze has also caught the eye of filmmakers, with a movie called “Dumb Money” being released last year to document this unique chapter in financial history.
