There are meme stocks and Roaring Kitty is back

The Washington Post

He followed that tweet with a YouTube video from years before when he championed the beleaguered company GameStop saying, “That’s all for now cuz I’m out of breath.
At Monday’s opening bell it appeared that Gill had reignited the phenomenon as shares of GameStop more than doubled.
It’s the biggest intraday trading jump for GameStop since the meme craze of early 2021.
The small guys won, at least for a while, driving shares of GameStop up more than 1,000% in 2021 and other meme stocks as well.
The retailer Bed, Bath & Beyond, another meme stock, sought bankruptcy protection last year.
Some meme stocks, including GameStop and AMC, had been climbing earlier this month, and rapidly.
Shares of GameStop Corp., which have faded steadily since 2021, had already risen 57% this month.
In January, GameStop reported its first annual profit since 2018, although it’s still unclear if Cohen’s turnaround plan will succeed.

POSITIVE

Monday saw a sharp increase in the prices of the peculiar and volatile shares after the man at the center of the pandemic meme stock craze made his first appearance online in three years.

On the social media platform X on Sunday, Keith Gill, also known as “Roaring Kitty,” shared a meme of a man leaning forward in his chair. Gamers use this meme when things get serious.

That’s all for now because I’m out of breath, he said, referencing a YouTube video he had posted years prior in which he supported the struggling company GameStop. He posted it below the tweet. Just so you know, I put together a short 4-minute video to highlight the $GME bull case. “.

In 2021, GameStop was a struggling video game retailer due to the rapid shift in consumer preferences from physical discs to digital downloads. Major investors and Wall Street hedge funds were shorting the company’s stock, or betting against it, on the assumption that its shares would continue their sharp decline.

Thousands of GameStop shares were acquired by Gill and his supporters, who, despite almost all accepted metrics, told investors that the company was in serious trouble, turned around a company that looked to be headed toward bankruptcy.

That sparked the start of the so-called “short squeeze,” in which large investors who had wagered against GameStop were compelled to purchase the company’s quickly increasing stock in order to make up for their enormous losses.

It seemed that Gill had rekindled the phenomenon at Monday’s opening bell, as GameStop’s shares more than doubled. On Monday, they concluded with a 74% gain. For GameStop, it’s the largest intraday trading increase since the early 2021 meme frenzy. AMC, a chain of movie theaters, and other meme stocks also saw a raise.

Volatility caused eight halts to GameStop trading before noon on Monday.

In 2021, Gill rose to fame when his comments in the Wallstreetbets subreddit on Reddit sparked a David vs. GameStop’s survival was heavily bet against by large hedge funds, which fought a Goliath battle.

The little guys prevailed, at least for a while, as evidenced by the more than 1,000% increase in GameStop’s shares in 2021 and other meme stocks. In a very short period of time that same year, the struggling chain of movie theaters AMC jumped 2,300%.

Big traders reported massive losses as GameStop raced from under $20 to nearly $400 per unit. The analytics firm S3 Partners estimates that prominent hedge funds such as Citron Research, Melvin Capital, and others lost close to $5 billion.

Some of those new and smaller investors believed, at least in part, that Ryan Cohen, co-founder of Chewy . com, could push the traditional retailer in a more online direction. Cohen gradually increased his ownership of GameStop, eventually joining the board and taking over as CEO last year.

AMC Entertainment Holdings Inc. joined the meme wave on Monday. which increased by 78%. Koss Corporation. a producer of headphones, increased by 37%, while BlackBerry, the former market leader in smartphones, saw a 7% increase. Last year, another meme stock, Bed, Bath and Beyond, filed for bankruptcy.

AMC and GameStop are two meme stocks that had been rising quickly earlier in the month.

GameStop Corp. shares. , which have been gradually declining since 2021, had already increased by 57% this month. It is still unclear whether Cohen’s turnaround strategy will be successful, even though GameStop announced its first annual profit since 2018.

Antenna Management Company, Inc. had increased by 10% during the previous 30 days.

In response to Gill’s tweet on Monday, those businesses became popular.

But in terms of businesses like GameStop, the market’s dynamics have shifted.

More than 140% of GameStop’s tradeable shares were shorted when Gill and a horde of retail investors started purchasing the company’s stock online. Because some traders were using the already shorted stocks as collateral to build even larger bets against the company, their losses when the stock started to rise dramatically is how you arrive at that distorted figure.

Almost 24% of trader shares of GameStop are now shorted, which is slightly higher than the 22.5 percent recorded in January.

While making a sizable profit on an investment in a struggling video game company, Gill refuted claims that he used social media to boost GameStop’s stock price during a virtual appearance before a congressional committee.

“I like the stock,” he told lawmakers at the time. “.

Gill, who went by Roaring Kitty, disappeared from message boards in June 2021 after sharing a video of kittens going to sleep.

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