GameStop Shares Surge Amid Roaring Kitty’s Return

Shares of GameStop jumped over 50% following an announcement by the internet stock influencer known as "Roaring Kitty"
Shares of GameStop jumped over 50% following an announcement by the internet stock influencer known as "Roaring Kitty"

Shares of GameStop surged nearly 50% on Thursday following an announcement by the online stock influencer known as “Roaring Kitty” that he would host a livestream on YouTube on Friday.

This marks the latest instance of volatile trading influenced by Keith Gill, the real name behind the Roaring Kitty persona.

Impact of Social Media on Stock Prices:

Thursday’s surge is part of a broader trend that began last month when Gill returned to social media platform after a three-year hiatus. This resurgence has significantly impacted GameStop’s stock, leading to substantial price increases.

  • Thursday’s Surge: GameStop shares jumped nearly 50%, closing at $46.55 per share.
  • Monday’s Rally: Shares closed over 20% higher after Gill posted on his Reddit profile, showing a $116 million bet on GameStop stock.
  • 2024 Performance: GameStop has surged over 160% in 2024, largely driven by Gill’s influence.

Influence on Other Meme Stocks:

Gill’s return to social media has rekindled rallies in other stocks popular among individual traders:

  • AMC Entertainment: Shares jumped 12% on Thursday.
  • Koss Corporation: The headphone maker’s shares rallied 15%.

Historical Context:

Keith Gill was a pivotal figure in the 2021 meme stock rally, which saw significant gains in stocks like GameStop, driven by individual investors on Reddit’s wallstreetbets forum. This movement caused substantial losses for hedge funds that had bet against these struggling companies.

  • 2021 Peak: GameStop’s stock reached an intra-day peak of nearly $121 before experiencing a sharp decline, losing nearly 90% in the following five sessions.

Regulatory Oversight:

The U.S. Securities and Exchange Commission (SEC) investigated the meme stock phenomenon of 2021. The investigation concluded that marketplace systems functioned properly despite the unprecedented volatility.

James Adam

James Adam, a noted business writer for CEO Times Magazine, specializes in insightful industry analysis and executive profiles. Known for his clear, concise style, James offers readers an expert perspective on global business trends and market dynamics.

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