Roaring Kitty's Return Sparks GameStop Shares to Soar by 72%
After a hiatus, Roaring Kitty, the alias of Keith Gill who played a key role in the meme stock craze of 2021, resurfaces online, igniting a significant surge in GameStop's stock value.
The unexpected return of the trader known as Roaring Kitty on social media caused GameStop shares to soar on Monday. This surge was not due to the company's financial situation, but rather stemmed from a cartoon image shared by Roaring Kitty on X.
After a three-year hiatus, Keith Gill's account posted a meme on X, resulting in GameStop shares jumping by 71.8% on Monday. Earlier in the day, the shares had surged by over 110% and were temporarily halted multiple times due to extreme volatility.
The image shows a man sitting in a chair holding a video game console. GameStop shared a similar cartoon in February, but with a red arrow and chair. In Gill's version, they are blue. The meme is said to mean "when things get serious," as per Know Your Meme.
Gill has not yet responded to CNN's request for comment.
Roaring Kitty, also known as Gill on Reddit, played a significant role on the WallStreetBets subreddit. He was a key figure in driving up the stock prices of GameStop, causing a frenzy in the market. This surge in stock prices was aimed at hurting short-sellers, who try to make money by borrowing and selling shares of a stock, hoping to buy them back at a lower price later on.
Retail investors in 2021 caused the prices of other stocks like AMC Entertainment and Bed Bath & Beyond to skyrocket. These stocks are now referred to as meme stocks, which are shares of companies that have a strong following among traders on social media. The value of these stocks can fluctuate significantly based on their popularity rather than their financial performance.
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During a 2021 Congressional hearing on the GameStop mania, Gill referred to himself as a casual daytime trader. He mentioned that he did not intend to contribute to the GameStop frenzy, but rather saw the stock as a good opportunity for investors.
In his written testimony, Gill dismissed the idea that he used social media to promote GameStop stock to unaware investors as ridiculous. He emphasized that his channel was solely for educational purposes and that it did not matter to him if other individual investors decided to purchase the stock.
Gill revealed that he initially bought GameStop stock in the summer of 2019 when it was priced at around $5 per share. He later purchased call options and continued to increase his position throughout the rest of 2019 and 2020. Gill expressed his belief that the market was not fully aware of GameStop's potential for growth.
However, even Gill himself did not anticipate that the stock would skyrocket to a high of $483 per share in 2021.
Gill testified that at the time, he believed it was possible but with a very low probability.
Gill, portrayed by actor Paul Dano, was a main character in the 2023 movie "Dumb Money." The film depicts the events surrounding the GameStop short squeeze.
This story is developing and will be updated.
CNN’s Clare Duffy, David Goldman and Allison Morrow contributed reporting.
Editor's P/S:
The unexpected resurgence of Roaring Kitty on social media has ignited a surge in GameStop shares, highlighting the enduring power of online traders in shaping market dynamics. This phenomenon, fueled by a cartoon image rather than the company's financial health, serves as a reminder of the influence of social media and the potential for rapid stock price fluctuations.
The meme shared by Roaring Kitty, also known as Keith Gill, has sparked speculation and excitement among traders, particularly those on the WallStreetBets subreddit. Gill's role in the GameStop frenzy of 2021, which targeted short-sellers and caused significant market volatility, has made his reappearance on social media a noteworthy event. It remains to be seen whether this latest surge in GameStop shares will sustain or if it will follow the pattern of other "meme stocks" that have experienced significant fluctuations based on online popularity rather than financial performance.
