- GameStop Corp. shares surged by up to 71% amid speculation of a potential return to social media by Keith Gill, the man behind the 2021 meme-stock frenzy.
- Gill’s social media activity sparked renewed interest, leading to increased discussions on Reddit’s WallStreetBets and heightened activity on platforms like StockTwits.
- GameStop’s shares have been on a three-week rally, marking its longest winning streak of the year, with shares climbing 68% during that period.
GameStop shares surge amid speculation of Keith Gill’s return, marking the longest winning streak of the year for the company.
GameStop Shares Surge Amid Speculation
GameStop Corp. saw its shares surge by as much as 71 per cent amidst speculation surrounding a potential return to social media by Keith Gill, famously known for igniting the meme-stock frenzy of 2021 as “Roaring Kitty”. Gill’s dormant account sparked interest when a post surfaced featuring a man leaning forward with what appeared to be a gaming controller, prompting speculation of his comeback to the trading scene. In 2021, Gill gained notoriety for rallying day traders on Reddit to squeeze GameStop short sellers.
Increased Activity on Trading Platforms
The response to Gill’s activity mirrors shades of the original 2021 frenzy, with discussions on Reddit’s WallStreetBets and heightened activity on platforms like StockTwits, leading to a surge in retail trader participation. “That he is able to generate a crowd says that the crowd is back to feeling FOMO and YOLO in an enormous way. When people dive into things that are of pure speculative value, their confidence is extremely high and this is one of the ways that it manifests,” Peter Atwater, president of Financial Insyghts and an adjunct professor at William & Mary and the University of Delaware, was quoted as saying by Bloomberg.
GameStop’s Longest Winning Streak of the Year
GameStop surged in a three-week rally leading up to Monday’s spike, marking its longest winning streak of the year, with shares climbing 68% during that period. Renowned for its meteoric rise of over 2,000% in early 2021, GameStop became emblematic of the meme-stock craze, capturing widespread public attention. After adjusting for a stock split, the shares reached a peak of $86.88 towards the end of that month, only to plummet approximately 88% within three weeks. On Monday, the shares were trading around $26.
Conclusion
GameStop’s recent surge in share price is largely attributed to speculation surrounding the return of Keith Gill, the man behind the 2021 meme-stock frenzy. The company’s shares have been on a three-week rally, marking its longest winning streak of the year. The renewed interest in GameStop shares highlights the ongoing influence of social media on stock market trends.
