Online resources - Gamestop's share price experiences a sudden surge - presumed to be sparked by a familiar figure.
A young investor who made waves in the financial world by triggering stock surges in video game retailer Gamestop appears to be making moves again. Keith Gill, the trader whose account on the social media platform Reddit shared a screenshot indicating he bought $175 million worth of Gamestop stocks and options.
The stock price shot up by 21% to $28, with an extra 8% increase seen in after-hours trading. At one point, the stock reached a tentative value twice its Friday price.
According to the published screenshot, Gill bought five million Gamestop stocks at around $21 each. This latest rally has significantly boosted his wallet, as the options he purchased allow him to buy Gamestop stocks at $20 until June 21st.
Back in the spotlight, Gill's Reddit account surfaced last night to reassure followers that he hasn't offloaded his shares despite a projected $79 million profit. This tactic is familiar to the Reddit community, as Gill sparked a similar frenzy around three years ago.
Questions abound on the authenticity of the screengrabs
There's lingering uncertainty regarding the legitimacy of the screenshots and who controls the Reddit account and other social media platforms. Gill's X profile reappeared last May, prompting a stir in Gamestop's share prices.
Reports from the Wall Street Journal suggest E-Trade may be considering blocking Gill, and the securities and exchange commission (SEC) is scrutinizing Gamestop options trading from the last few weeks.
Gamestop stock: Reddit hopes for another 2021 boom
Struggling against online competition, Gamestop has been experiencing a downtrend in its share price for some time. Market predictions favored further declines. During the pandemic, the stock was a favorite for short-sellers, who borrow stocks and then sell them before returning them. They hoped to repurchase them at lower prices and sidestep the short-selling liability.
However, in early 2021, massive losses were recorded by short sellers when Gill and other online influencers marketed the stock, making it a hot commodity. There were few stocks available, leading to a further hike in the price.
