- GameStop and AMC shares experienced a significant surge early Monday following a social media post by Keith Gill, the individual who initiated the meme stock rally during the pandemic.
- Gill, also known as Roaring Kitty on social media, made his first social media appearance in three years, leading to a temporary pause in trading on the New York Stock Exchange as GME shares skyrocketed.
- The post, an image of a meme suggesting he is “getting serious,” was met with enthusiasm from retail investors, with comments such as “he’s back,” “game on,” and “just in time for the memecoin supercycle.”
Keith Gill, the catalyst behind the meme stock rally, returns to social media after three years, sparking a surge in GameStop and AMC shares.
Immediate Impact on GME and AMC Stocks
Following Gill’s post, GME stock soared about 78% early Monday. The NYSE had to pause trading on GME stock multiple times within the first hour of trade Monday due to volatility. GameStop shares were essentially flat on the year through Friday, closing at 17.46. Meanwhile, AMC Entertainment rallied 19% early Monday. AMC stock has dived nearly 53% in 2024 through Friday. Shares are not too far above their record low of 2.38 from April.
Recalling the Previous Short Squeeze
In 2021, shares of GME stock surged 688%. Individual investors coordinated a buying spree in the video-game retailer’s shares using online message boards. This caught short sellers, who were betting the stock would fall, by surprise. These “shorts” faced unlimited losses unless they bought the stock, further fueling gains. The entire short squeeze saga was detailed in the movie “Dumb Money.”
Conclusion
The return of Keith Gill to social media has reignited interest in meme stocks, particularly GameStop and AMC. While the long-term impact of this development remains to be seen, it serves as a reminder of the power of social media in influencing stock market trends.
