GameStop shares soar by 73% as meme stock influencer discloses $116 million investment.
A post by Reddit influencer Keith Gill, also known as "Roaring Kitty," sent the stock of a video game retailer skyrocketing when he revealed he had purchased $116 million worth of the stock. This was the first time Gill had posted on his account in over three years, during a time when social media buzzed with excitement about GameStop (GME) shares.
Meme stocks are shares that experience significant fluctuations in value due to their popularity on social media trading communities rather than the companies' actual characteristics. The craze began with GameStop in 2021 and expanded to include companies like AMC Entertainment (AMC) and Bed, Bath, and Beyond, which recently filed for bankruptcy.
On Monday, shares of AMC Entertainment increased by almost 28%, reaching 6.47 a.m. ET.
Gill was also responsible for sending GameStop's stock prices soaring last month with a meme featuring a man sitting in a chair with a video games console on his lap — his first post on that platform in three years. This meme, according to Know Your Meme, represents the phrase "when things get serious."
Gill was a major contributor to the WallStreetBets subreddit in 2021, where Reddit users discuss anything related to a specific subject. His posts propelled GameStop's stock to unbelievable heights, with individual investors driving up the shares to counteract short-sellers who had wagered that the company's stock would decline.
Short-selling is a strategy used by investors to make a profit by borrowing a certain company's shares, selling them, and then repurchasing them when their price decreases.
During the GameStop frenzy in 2021, Gill addressed the United States Congress, portraying himself as a part-time day trader. He further stated that he didn't purposefully fuel the GameStop mania, but rather saw it as an enticing investment opportunity for investors.
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Businesses in the investing world closely watched the significant rise in GameStop's shares, as meme stock influencer Keith Gill disclosed an investment of $116 million. With this move, Gill added to his reputation as a key player in the meme stock phenomenon, highlighting the potential impact of social media on stock prices.
