Keith Gill, better known as “Roaring Kitty,” reappeared online after a three-year absence, causing a surge in the prices of meme stocks, particularly GameStop, on Monday.
Gill, a central figure in the 2021 meme stock craze, posted a meme on the social platform X and a YouTube video explaining his bullish stance on GameStop, reigniting interest in the struggling video game retailer.
In 2021, GameStop was facing bankruptcy as consumers shifted from physical discs to digital downloads.
Large Wall Street hedge funds were betting against the company by shorting its stock, expecting the share price to continue falling.
However, Gill and his supporters bought thousands of GameStop shares, driving up the price and causing a “short squeeze” that forced the big investors to buy the rising stock to offset their substantial losses.
Gill’s recent online activity caused GameStop shares to more than double at Monday’s opening bell, eventually closing up 74%.
This marked the biggest intraday trading jump for GameStop since the 2021 meme stock phenomenon. Other meme stocks, such as AMC Entertainment Holdings Inc., also experienced significant gains.
The resurgence of meme stocks is reminiscent of the David vs. Goliath battle in 2021, when small investors, inspired by Gill’s posts on the Reddit subcategory Wallstreetbets, took on large hedge funds.
The small investors emerged victorious, at least temporarily, driving shares of GameStop up more than 1,000% and causing billions in losses for the hedge funds.
Some investors believed that Ryan Cohen, co-founder of Chewy.com and current CEO of GameStop, could help transform the traditional retailer into a more online-focused business.
While the dynamics of the market have changed since 2021, with fewer short positions against GameStop, the recent surge in meme stock prices demonstrates the enduring influence of social media and retail investors on the stock market.
The Associated Press contributed to this article.