Keith Gill, known as Roaring Kitty, made a surprise return to social media on Monday, causing a frenzy in the stock market.
Gill, who played a significant role in the 2021 meme stock phenomenon, posted an image on X (formerly Twitter) depicting a gamer about to get serious as he sits in a red chair — his first post, at least allegedly, since June 2021. This was enough to send GameStop shares soaring by as much as 110% before closing the day up 74%.
Short sellers, who bet against the stock, suffered $1 billion in mark-to-market losses on Monday, according to data from S3 Partners.
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Related: GameStop Craters On Q4 2023 Revenue Decline, Job Cuts
The meme stock frenzy also extended to other companies, with AMC Entertainment shares rising 78% and Reddit shares climbing 9%. Trading platform Robinhood Markets, which faced criticism for suspending purchases of meme stocks in 2021, saw its shares rise 4%.
However, Robinhood denied claims that it had once again halted GameStop stock purchases on its platform, stating that the stock was experiencing market-wide trading limits and halts due to elevated volatility.
Others, like X user Markets & Mayhem and Ozzy, speculate that it may not have been Gill himself. Pointing to how he remains inactive on other platforms, and the “REALLY weird posts” on his X account.
Gill, who testified before Congress in 2021 about his role in the GameStop mania, maintained that he did not set out to promote the stock to unwitting investors and believed it was an attractive opportunity based on his analysis. Despite the stock’s meteoric rise, Gill admitted that even he did not expect it to reach a high of $483 per share in 2021, considering it a low-probability event at the time.
Information for this story was found via Yahoo! Finance, CNN, and the sources and companies mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
