A recently released cartoon sparks a 72% jump in GameStop's share prices.
GameStop's shares spiked an incredible 71.8% on Monday following a meme shared by the Gill account, which hadn't posted on X in over three years. The action caused the stock to surge more than 110% at one point before being halted multiple times due to wild fluctuations.
The meme shows a guy casually sitting in a chair holding a gaming console, with a reworked version of a cartoon GameStop had previously shared in February. That one had a red arrow and chair, but the new version has blue arrows and a blue chair. The internet explains that the meme's meaning behind it is when things get intense or serious.
No response was given by Gill to CNN's request for comment.
Gill, known as "Deepf—-ingvalue" on Reddit, was one of the key players behind the WallStreetBets community responsible for the unbelievable profits from GameStop's stock. They targeted short-sellers (those looking to profit on a stock via borrowing, selling, and then repurchasing at a lower cost). This resulted in a surge for other stocks like AMC Entertainment and Bed Bath & Beyond, now called "meme stocks," due to their popularity on social media- based traders’ groups.
In a previous Congressional hearing on the GameStop phenomenon, Gill testified and described himself as a casual day trader. He maintains it was never his intention to whip up the GameStop craze; instead, he believed the stock looked like a good buying opportunity for investors.
"To suggest that I used social media to advertise GameStop stock to unsuspecting investors is absurd," Gill stated in his written testimony. "My channel was purely for educational purposes. It wasn't the intention of any individual investors to buy the stock, it was irrelevant to my stance."
Stay tuned as this story continues to evolve.
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Investors looking to capitalize on the ongoing popularity of "meme stocks" like GameStop and AMC Entertainment may want to consider the role of social media in driving their prices. In fact, many businesses are starting to recognize the potential of leveraging influencers and online communities to increase their stock's visibility and attract potential investors.
Source: edition.cnn.com
