GameStop (GME) shares experienced a significant jump on Thursday following a cryptic social media post from Keith Gill, the influential figure behind the 2021 meme stock surge. Known by his online aliases “Roaring Kitty” on YouTube and “DeepF***ingValue” on Reddit, Gill posted an image of a Time magazine cover featuring a computer screen on the platform X, leading to a 13% increase in GameStop’s stock price by late afternoon trading.
— Roaring Kitty (@TheRoaringKitty) December 5, 2024
Gill’s influence was pivotal during the “Reddit rally” of January 2021, where GameStop’s stock value soared by 1,600%, significantly impacting hedge funds that had shorted the company. His return to social media after a three-year absence earlier in 2024 rekindled enthusiasm among his followers, who view him as a symbol of retail investors challenging Wall Street’s established players.
The response in the options market was swift; by 2:14 p.m., approximately 300,000 GameStop options contracts had been traded, a rate 1.5 times higher than usual, according to Reuters, citing Trade Alert. This activity indicates a heightened interest in GameStop’s stock, particularly in options that would profit if the stock price exceeded $30 by Friday, with 32,000 such contracts changing hands.
The stock’s 30-day implied volatility, a measure of expected price fluctuations, also surged to a three-week high of 132% from 93% in the previous session, reflecting traders’ anticipation of significant movements in the stock price.
Gill’s posts have historically triggered widespread retail investor interest, not just in GameStop but in other heavily shorted stocks like AMC Entertainment Holdings (AMC). His actions in 2021 led to a collective effort by Reddit users to force short squeezes, resulting in substantial financial losses for hedge funds and drawing regulatory attention. This wave of activity was so notable that it inspired the film “Dumb Money” by Craig Gillespie in 2023.
The phenomenon of meme stocks, fueled by social media and community-driven investment strategies, continues to demonstrate the power of retail investors in influencing market dynamics, particularly when combined with cryptic signals from influential figures like Gill. His latest post not only moved the market but also reignited discussions about the power of individual investors in today’s digital age.
Price Action: GameStop shares closed Thursday’s trading session at $28.57, marking a significant gain of $1.54, or 5.7%, compared to the previous day. The stock’s price fluctuated throughout the day, hitting a low of $26.15 and a high of $30.87. In the broader context, GameStop’s 52-week low stands at $9.95, while its 52-week high reached $64.83.
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