The resurgence of GameStop mania has brought the roller coaster ride of meme stocks back into the spotlight. On Monday, GameStop shares experienced a meteoric rise, climbing over 110% and triggering multiple trading halts throughout the day. The catalyst for this surge was a cryptic tweet from Keith Patrick Gill, known by his online alias Roaring Kitty. Gill, who played a pivotal role in the 2021 GameStop short squeeze, had been absent from the digital realm for three years before making his highly anticipated return on Sunday.
Gill’s tweet, featuring an image of a focused gamer leaning forward in their chair, sent ripples through the market and reignited investor fervor. By Monday morning, the tweet had garnered over 10 million views, igniting speculation about Gill’s potential return to Reddit. The impact of Gill’s reappearance extended beyond GameStop, as other meme stocks experienced significant gains. AMC Entertainment soared by 78%, while popular meme-coins Dogecoin and Shiba Inu saw increases of over 6% and 5%, respectively.
The GameStop meme stock phenomenon initially gained momentum in 2021, fueled by a coalition of small investors emboldened by the Reddit community WallStreetBets. The surge was further propelled by an endorsement from Elon Musk on Twitter. However, GameStop’s path since its 2021 peak has been marked by challenges, with virtual reality gaming becoming more mainstream and mobile gaming remaining the dominant force. The video game retailer’s latest quarterly earnings report painted a grim picture, revealing disappointing sales figures and significant layoffs.
Despite these challenges, GameStop’s recent resurgence suggests that the allure of meme stocks remains strong among individual investors. The return of Roaring Kitty, coupled with the potential for a new wave of retail investor enthusiasm, could set the stage for another chapter in the meme stock saga.
