WASHINGTON (dpa-AFX) - Monday, GameStop Corp.'s (GME) shares experienced a significant surge in value following the return of trader Keith Gill, also known as 'Roaring Kitty,' to social media.
Gill, who had not been active on social media since June 2021, made a comeback on Sunday by sharing a meme of a man leaning forward in his chair, which received over 17 million views.
The price of GameStop's shares had already increased by over 60% from May 1 to the previous Friday but rose by up to 118% in early trading on Monday due to Gill's post. However, regulations aimed at preventing excessive stock volatility caused the gains to fall to around 70% by midday.
The meme stock craze involved individual investors challenging short sellers and hedge funds who were bearish on companies like GameStop, leading to forced short position coverings and increased stock prices.
The GameStop frenzy in early 2021 resulted in trading restrictions by platforms such as Robinhood, which faced a class-action lawsuit that was dismissed in August 2023. Despite allegations, Robinhood clarified that the halt in GameStop stock purchases was not due to increased volatility triggering market-wide restrictions.
After sharing a video of sleeping kittens in June 2021, Roaring Kitty disappeared from online platforms. The film 'Dumb Money' drew inspiration from the events surrounding Roaring Kitty and the meme stock trend.
GME is trading on the Nasdaq at $31.19, up 78.67% or $13.74 per share. It has traded between $9.95 and $38.15 in the past 52-week period.
Copyright(c) 2024 RTTNews.com. All Rights Reserved
Copyright RTT News/dpa-AFX
© 2024 AFX News
