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GameStop Shares Surge as ‘Roaring Kitty’ Divulges Huge $115.7M Bet on GME Stock

According to a trading account screenshot posted on Reddit, the Roaring Kitty GME position also includes 120,000 GameStop call options. Following market close, Roaring Kitty posted another screenshot showing today's huge gains and his new updated account totals.

Shares of GameStop (NYSE: GME) experienced another dramatic rise on Monday, with GME stock closing the day up 21% at $28 per share, following the reappearance of Keith Gill, famously known as “Roaring Kitty” on YouTube and X (formerly Twitter), and “DeepFuckingValue” on Reddit.

Gill, the figurehead of the 2021 meme stock frenzy, posted a screenshot on the Reddit r/SuperStonk forum showing a significant investment in the video game retailer, sparking renewed interest among retail investors.

Gill’s screenshot revealed he holds 5 million shares of GameStop, worth approximately $115.7 million based on Friday’s closing price of $23.14. Additionally, the Roaring Kitty GME position also includes 120,000 call options with a strike price of $20 expiring on June 21.

GME YOLO update – June 2 2024
byu/DeepFuckingValue inSuperstonk

This post sent GameStop shares soaring more than 70% at market open, although they later settled down to a 21% gain by the end of the trading day.

News of the substantial Roaring Kitty GME position revived memories of the 2021 GameStop short squeeze that saw GME stock skyrocket due to coordinated buying by retail investors, leading to significant losses for hedge funds that had bet against the stock. This surge in stock price was driven by Gill’s earlier encouragement of retail traders to invest in GameStop, leveraging social media platforms to build a collective buying momentum.

Adding to the drama, Gill posted a cryptic picture of a reverse card from the game “Uno” on X, further fueling speculation among traders. This enigmatic move, coupled with his substantial investment, rekindled interest in GameStop and other meme stocks, including AMC Entertainment (NYSE: AMC) and Tupperware (NYSE: TUP), which also saw significant gains.

Ben Laidler, global markets strategist at digital brokerage eToro, commented on the development, stating:

“Keith Gill is putting his money where his tweets are, and some investors are clearly following his lead and rekindling interest in meme stocks.”

Despite the surge, there were warnings from market analysts about the sustainability of this rally.

Steve Sosnick, chief strategist at Interactive Brokers, cautioned investors, saying:

“Is whoever controlling this account doing this in your best interest or in their best interest? And, really, you should think that one through because, to me, it [is] pretty obvious whose interest it’s in.”

This sentiment reflects concerns about the potential for market manipulation and the risks associated with chasing such volatile stock movements.

The renewed frenzy around GameStop also led to discussions about the potential actions of financial institutions. According to a late-afternoon report by the Wall Street Journal, Morgan Stanley’s E*Trade was considering whether Gill’s actions could be deemed market manipulation. This report contributed to a temporary dip in GameStop’s stock during the trading session.

GameStop capitalized on the previous surge in May by raising over $900 million through a stock sale. This move, although dilutive, provided the company with much-needed capital as it continues to struggle with transitioning from brick-and-mortar stores to an online gaming model. Investors are banking on CEO Ryan Cohen’s vision to reinvent the company and navigate through the challenging retail environment.

The stock market’s response to the Roaring Kitty GME post underscores the continued influence of social media on trading dynamics, particularly within the retail investor community. With GameStop expected to post its first-quarter results on June 11, the market will be closely watching to see if the company’s financial performance can justify the renewed optimism among its investors.

In conclusion, while the resurgence of ‘Roaring Kitty’ has reignited interest in GameStop and other meme stocks, investors are urged to tread carefully amidst the volatility and speculative nature of these investments. The broader implications of such market movements continue to be a topic of significant interest and concern among financial analysts and regulators alike.

Roaring Kitty GME After-Hours Update

Following market close today, Gill posted another screenshot showing his account’s new updated totals, which showed his:

  • GME stock position valued at $140 million, up +31.62%.
  • GME call options worth $120 million, up +76.04%.
  • Cash position at $29,276,400.56.
  • Total portfolio value at $289,276,400.56.

GME YOLO update – June 3 2024
byu/DeepFuckingValue inSuperstonk

Read Next: GameStop Stock Soars Another 60% as Meme Stocks Reignite

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Disclaimer: Wealthy VC does not hold a long or short position in any of the stocks, ETFs or cryptocurrencies mentioned in this article.

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