GameStop Corp. shares skyrocketed on Monday, climbing 64% following a post by Keith Gill, the prominent retail investor who goes by the username DeepF— Value on Reddit.
Gill’s post revealed a substantial $116 million position in the video game retailer, reigniting the fervor of the meme-stock mania that first took hold in 2021.
On June 2, Gill posted a screenshot on Reddit showcasing his acquisition of five million GameStop shares at $21.27 per share.
The screenshot also included 120,000 call options valued at $65.7 million, set to expire on June 21, with a strike price of $20 per share. This was Gill’s first post in three years, marking a significant reentry into the public eye.
The impact was immediate. GameStop shares surged to $37.90 on Germany’s Tradegate, significantly above the $23.10 closing price on the previous Friday.
Gill, who also operates under the handle Roaring Kitty on the social media platform X (formerly known as Twitter), posted an image of an UNO reverse card.
The image, often used humorously to signify a dramatic change in direction, garnered over 4.5 million views within five hours of its publication at around 8 p.m. Sunday, New York time.
This social media activity reignited interest in GameStop among retail investors, many of whom had been dormant since the initial meme-stock surge in early 2021.
While the renewed enthusiasm from retail investors led to a sharp rise in GameStop’s stock price, some analysts expressed caution.
Robert Lea, a Bloomberg Intelligence analyst, said, “Recent renewed interest in meme stocks, coming as the main US indices struggle to make new highs, is a sign of excessive over exuberance and is more likely a negative portent given the rising headwinds in the markets.”
Gill’s reappearance has also rekindled discussions on Reddit forums, particularly on r/Superstonk, a subreddit dedicated to theoretical discussions about GameStop stock.
The fervor resembles the early days of 2021, when Gill’s posts helped galvanize a movement against institutional short-sellers.
Keith Gill, a former financial analyst, became a household name in 2021 when his advocacy for GameStop as a promising investment led to an unprecedented rally.
His call for retail investors to buy and hold the stock in defiance of short-sellers pushed GameStop shares up more than 2,000% at the height of the frenzy.
Since then, GameStop shares have experienced significant volatility. The stock fell more than 50% following a brief rally in mid-May, triggered by another post from Gill, which hinted at his potential return to the market.
With his recent $116 million position, Gill seems poised to reignite the meme-stock phenomenon. However, whether this surge is sustainable remains to be seen.
Investors will be closely watching Gill’s next moves, as well as any shifts in the broader market that could affect GameStop’s stock price.
The latest rally highlights the enduring influence of retail investors and the power of social media in shaping market dynamics. As GameStop’s journey continues, the role of individual investors and their impact on the financial markets will undoubtedly remain a topic of intense interest and debate.
