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Former trader Keith Gill, known as Roaring Kitty, returns online and shares a meme leading to GameStop stock surge

Published: 13 May 2024 at 14:18

Business

Keith Gill, also known as Roaring Kitty, made his first post in three years sharing a meme, causing GameStop shares to surge by 71.8%. Gill, a key figure in the meme stock frenzy of 2021, did not respond to requests for comment on the meme. He described himself as a casual trader and denied using social media to promote GameStop stock to unwitting investors.

DEEP DIVE


Keith Gill (Wikipedia)


Keith Patrick Gill (born 1986) is an American financial analyst and investor known for his posts on the subreddit r/wallstreetbets. His analyses of GameStop stock (NYSE: GME), and details of his resulting investment gains—posted on Reddit under the username DeepFuckingValue (DFV) and on YouTube and Twitter as Roaring Kitty—were cited as a driving factor in the GameStop short squeeze of January 2021, and as a spark for the subsequent trading frenzy in retail stocks. The rising stock value allowed Gill to turn a US$53,000 investment into one worth close to $50 million (as of January 28, 2021).Gill's posts were described as "forthright, spreadsheet-laden content". His Reddit username derives from the investing term deep value, as Gill claims to be a proponent of value investing. Reuters revealed his identity to the public on January 28, 2021, after an investigation of public records and social-media posts.Gill gave testimony as part of a virtual hearing held by the US House Financial Services Committee on February 18, 2021, as part of a discussion about when "short sellers, social media, and retail investors collide". Gill testified he "did not solicit anyone to buy or sell the stock for [his] own profit."

GameStop short squeeze (Wikipedia)


In January 2021, a short squeeze of the stock of the American video game retailer GameStop and other securities took place, causing major financial consequences for certain hedge funds and large losses for short sellers. Approximately 140 percent of GameStop's public float had been sold short, and the rush to buy shares to cover those positions as the price rose caused it to rise even further. The short squeeze was initially and primarily triggered by users of the subreddit r/wallstreetbets, an Internet forum on the social news website Reddit, although a number of hedge funds also participated. At its height, on January 28, the short squeeze caused the retailer's stock price to reach a pre-market value of over US$500 per share ($125 split-adjusted), nearly 30 times the $17.25 valuation at the beginning of the month. The price of many other heavily shorted securities and cryptocurrencies also increased.On January 28, some brokerages, particularly app-based brokerage services such as Robinhood, halted the buying of GameStop and other securities, citing the next day their inability to post sufficient collateral at clearing houses to execute their clients' orders. This decision attracted criticism and accusations of market manipulation from prominent politicians and businesspeople from across the political spectrum. Dozens of class action lawsuits have been filed against Robinhood in U.S. courts, and the U.S. House Committee on Financial Services held a congressional hearing on the incident.The unusually high price and volatility continued after the peak in late January. On February 24, the GameStop stock price doubled within a 90-minute period, and then averaged in the neighborhood of $200 per share for another month. On March 24, the GameStop stock price fell 34 percent to $120.34 per share after earnings were released and the company announced plans for issuing a new secondary stock offering. On March 25, the stock recovered dramatically, rising by 53 percent.

GameStop (Wikipedia)


GameStop Corp. is an American video game, consumer electronics, and gaming merchandise retailer. The company is headquartered in Grapevine, Texas (a suburb of Dallas), and is the largest video game retailer worldwide. As of January 28, 2023, the company operates 4,413 stores including 2,949 in the United States, 216 in Canada, 419 in Australia and 829 in Europe under the GameStop, EB Games, EB Games Australia, Micromania-Zing, ThinkGeek and Zing Pop Culture brands. The company was founded in Dallas in 1984 as Babbage's, and took on its current name in 1999.The company's performance declined during the mid-to-late 2010s due to the shift of video game sales to online shopping and failed investments by GameStop in smartphone retail. In 2021, after retail investors on Reddit noticed that the short interest exceeded 100%, the company's stock price skyrocketed from $17.25 to over US$500 per share. According to the SEC report, this volatility was only in part due to the massive buying power of retail investors. The company received significant media attention during January and February 2021 due to the volatility of its stock price in the GameStop short squeeze. The company is now ranked 577th on the Fortune 500. GameStop also owns and publishes the video game magazine Game Informer.

R/wallstreetbets (Wikipedia)


r/wallstreetbets, also known as WallStreetBets or WSB, is a subreddit where participants discuss stock and option trading. It has become notable for its colorful and profane jargon, aggressive trading strategies, and for playing a major role in the GameStop short squeeze that caused losses for some US firms and short sellers in a few days in early 2021.The community is run by u/OPINION_IS_UNPOPULAR, who has moderated the community for over 9 years.

GameStop to Begin Buying and Selling Rare PSA-Graded Pokemon Cards


GameStop is set to enter the collectibles market by buying and selling rare Pokemon cards that have been graded by Professional Sports Authenticator (PSA) at an 8, 9, or 10 level, starting in select stores. The company will not accept cards valued at over $500 and will not provide grading services. GameStop aims to tap into the booming market for high-end collectibles, following its recent struggles with the shift to digital gaming purchases. Employees speculate on pricing and potential store policies. The program rollout begins in 258 stores initially.

GameStop: Rise of the Players (Wikipedia)


GameStop: Rise of the Players is a 2022 American documentary film directed by Jonah Tulis and produced by Blake J. Harris, who worked on Console Wars together.

Former trader Keith Gill, known as Roaring Kitty, returns online and shares a meme leading to GameStop stock surge Former trader Keith Gill, known as Roaring Kitty, returns online and shares a meme leading to GameStop stock surge Former trader Keith Gill, known as Roaring Kitty, returns online and shares a meme leading to GameStop stock surge Former trader Keith Gill, known as Roaring Kitty, returns online and shares a meme leading to GameStop stock surge Former trader Keith Gill, known as Roaring Kitty, returns online and shares a meme leading to GameStop stock surge Former trader Keith Gill, known as Roaring Kitty, returns online and shares a meme leading to GameStop stock surge

SOURCES

Business Insider

Roaring Kitty is back on social media — and meme stock GameStop is soaring

Business Insider

ABC News

Roaring Kitty is back and so are meme stocks, GameStop and AMC surge at the opening bell

ABC News

ABC News

Roaring Kitty is back and so are meme stocks, GameStop and AMC surge at the opening bell

ABC News

Yahoo! News

GameStop soars after flag bearer 'Roaring Kitty' resurfaces with X post

Yahoo! News

Yahoo! News

GameStop soars after flag bearer 'Roaring Kitty' resurfaces with X post

Yahoo! News

Yahoo! News

GameStop rockets, pounding short sellers, as 'Roaring Kitty' returns; shares halted

Yahoo! News

Yahoo! News

GME Stock, AMC Roar Back To Life As Key Player In Meme Rally Returns

Yahoo! News

Yahoo! News

Roaring Kitty is back and so are meme stocks, GameStop and AMC surge at the opening bell

Yahoo! News

AP News

Roaring Kitty is back and so are meme stocks, GameStop and AMC surge at the opening bell

AP News

NBC

GameStop shares soar 80% and are halted as trader ‘Roaring Kitty’ who drove meme craze resurfaces

NBC

CNN

A cartoon on X just sent GameStop shares surging 72% | CNN Business

Krystal Hur

Business Insider

GameStop's 118% spike is its biggest in 3-plus years after Roaring Kitty returns with a meme

Business Insider

Business Insider

A flood of crypto tokens with names referencing GameStop and famed trader Roaring Kitty have been created in the last 24 hours as developers try to ride a meme-coin resurgence

Business Insider

The Guardian

GameStop shares double as ‘Roaring Kitty’ returns to social media

https://www.theguardian.com/profile/callum-jones

NY Post

GameStop stock surges more than 110% as ‘Roaring Kitty’ makes surprise comeback with cryptic post

NY Post

Yahoo! News

GameStop stock gains more than 70%, gets halted for volatility after 'Roaring Kitty' post

Yahoo! News

Yahoo! News

GameStop stock gains more than 70%, gets halted for volatility after 'Roaring Kitty' post

Yahoo! News

Gizmodo

Return of Roaring Kitty Sends Meme Stocks Into Chaos

Fox News

GameStop shares soar after 'Roaring Kitty' posts on X

Fox News

BBC News

GameStop shares surge as 'Roaring Kitty' returns

https://www.facebook.com/bbcnews

Wikipedia

Keith Gill

Wikipedia

Wikipedia

GameStop short squeeze

Wikipedia

Wikipedia

GameStop

Wikipedia

Wikipedia

R/wallstreetbets

Wikipedia

PANORA

GameStop to Begin Buying and Selling Rare PSA-Graded Pokemon Cards

PANORA

Wikipedia

GameStop: Rise of the Players

Wikipedia