Shares of AMC and GameStop surged after a meme stock trader posted for the first time in three years.
The trader, known as Roaring Kitty, shared a cartoon of a gamer on X, and that was the reason behind the increase, not the unstable company’s financials.
Monday saw a 74% increase in GameStop shares when Keith Gill’s account posted a meme on X, the company’s first post in three years. The shares had earlier surged by over 110% and were repeatedly suspended on Monday morning due to volatility.
Shares of AMC and GameStop surged after a meme stock trader posted for the first time in three years.
Data firm S3 Partners reports that short sellers who bet against GameStop on Monday saw mark-to-market losses of $1 billion.
By borrowing shares, selling them, and then repurchasing them at a reduced price, short sellers hope to make money on a stock.
Another meme stock, AMC Entertainment, saw a 78% increase in shares. Shares of Reddit increased by about 9%. The stock of trading platform Robinhood Markets, which throughout the 2021 frenzy had stopped buying GameStop, AMC, and other meme stocks, increased by 4%.
Gill shared a picture of a man seated in a chair who leaned forward, holding a video gaming console. A similar animation, but with a blue arrow and chair, was shared by GameStop in February.
Gill’s drawing depicts them as red. Know Your Meme says that the meme is meant to say, “When things get serious.”
Shares of AMC and GameStop surged after a meme stock trader posted for the first time in three years.
Several circuit breakers were triggered by GameStop shares, causing a brief and required pause to trade so that investors could calm off.
On Monday, Robinhood refuted rumors on social media that it has once again stopped allowing users to purchase GameStop stock through its platform.
This is untrue. According to a statement from Robinhood spokesperson Anupriya Gate, the company has not stopped buying Game Stop shares.
Exchange trading limits and halts are imposed on the entire market due to the increased volatility and movement observed in GME. These aren’t exclusive to Robinhood; they apply to the entire market.
Roaring Kitty: Who is she?
Reddit user Gill, also known as “Deeping Value,” was a driving force behind the spectacular returns in GameStop’s shares on the Wall Street Bets forum. In an attempt to oust short sellers, the traders bid up retailer shares.
In 2021, the stocks of AMC Entertainment and Bed Bath & Beyond saw significant gains thanks to the actions of ordinary investors. These days, the term “meme stocks” refers to shares of cult-like companies that see large fluctuations in value due to their popularity among trading communities on social media rather than their underlying performance.
Gill added that in the summer of 2019, when GameStop stock was trading for about $5 a share, he initially bought the company’s stock and then called options. He stated in his testimony that he thought “the market remains oblivious to GameStop’s unique opportunity” and continued to expand his role through the end of the year and 2020.
However, not even he anticipated that it would reach a peak of $483 per share in 2021.
Gill stated, “At the time, I thought it was possible, but with a very low probability.”
Actor Paul Dano portrayed Gill as a major figure in the 2023 film “Dumb Money,” which chronicled the events leading up to and during the GameStop short squeeze.
