Keith Gill, known as Roaring Kitty, has reignited the meme stock frenzy by revealing a $116m investment in GameStop, the struggling US videogame retailer. The influencer, credited with sparking the initial meme stock craze in 2021, announced his significant position on Sunday, holding 1.8% of GameStop's available stock.

Roaring Kitty's return to Reddit spurs stock surge

Gill's announcement comes after his return to Reddit last month, marking his first appearance in three years. This reemergence triggered renewed interest in GameStop and other undervalued stocks. Within three weeks, GameStop's market value doubled, and the company's board capitalized on the momentum, raising over $900m in a subsequent stock sale.

GameStop shares soar amid trading frenzy


On Monday, GameStop shares surged as much as 75% in early trading, adding $4.6bn to its market value. By the end of the day, shares settled around 30% higher, standing at �30 per share after closing at $23 on Friday. LSEG data showed more GameStop shares changed hands than Apple shares within the first 42 minutes of official trading.


Gill's influence on the market cannot be overstated. His initial GameStop trades in 2021 birthed the meme stock movement, where investors bought stocks with weak fundamentals, causing significant losses for hedge funds. This trend extended to other companies like AMC, gaining cult-like followings on Reddit.

Investor caution amidst renewed interest

Despite the renewed interest, GameStop's core business continues to struggle with the transition to online gaming. The company primarily sells new and used videogame discs and recently warned of a drop in first-quarter net sales compared to the previous year.

Nigel Green, CEO of asset management firm deVere Group, advised caution amidst the hype but acknowledged the potential for significant gains. "These super quick, super high, headline-grabbing figures are likely going to attract another huge wave of interest and, therefore, capital. I would not be surprised if the stock added $100bn by the end of Monday due to the frenzy," Green stated.

Gill's actions and the subsequent market response highlight the ongoing influence of social media and online communities on stock market dynamics. As GameStop's stock continues to fluctuate, investors remain keenly interested in the next moves of Roaring Kitty and the broader meme stock phenomenon.
Credit: News