Current:Home > NewsGameStop shares skyrocket after 'Roaring Kitty' reveals $116M bet on the company-LoTradeCoin
GameStop shares skyrocket after 'Roaring Kitty' reveals $116M bet on the company
View Date:2025-01-13 15:14:22
GameStop shares jumped 21% on Monday after "Roaring Kitty" Keith Gill, the stocks influencer behind the 2021 retail trading frenzy, returned to Reddit with a post showing a $116 million bet on the embattled videogame retailer.
The stock was set to add $4.6 billion to its market value after surging as much as 75% earlier in the session. Roughly $2.7 billion worth of shares changed hands by 10:12 a.m. ET, compared with $2.3 billion in Apple, according to LSEG data.
It was Gill's first post in three years from his Reddit account, where screenshots of his bullish GameStop trades triggered a rush of demand in 2021 for "meme stocks" ‒ often companies with weak fundamentals that gained a cult-like following through social media hype among retail traders.
The screenshot posted on Sunday showed a GameStop holding of 5 million, or 1.8% of its publicly available stock. Gill's last post from April 2021, titled "final update," showed a holding of 200,000 shares worth $30.9 million.
Sunday's post also revealed $65.7 million worth of call options expiring on June 21 at a strike price of $20.
The stock wrapped up a volatile month at $23 on Friday, about 33% higher since Gill began sharing cryptic posts and memes from his "Roaring Kitty" account on X.com in May, sparking speculation over whether he would resume sharing his trades online after the hiatus.
"Keith Gill is putting his money where his tweets are, and some investors are clearly following his lead and rekindling interest in meme stocks," said Ben Laidler, global markets strategist at digital brokerage eToro.
"This is having a disproportionate share price impact given the short position in the stock combined with its relatively small market capitalization."
Meme stocks:GameStop, AMC stock booming after Roaring Kitty's return. Will Trump Media stock follow?
GameStop was the second-most traded stock on retail brokerage Fidelity. Fellow meme stock AMC jumped 20%.
Monday's surge also put GameStop short sellers on track to rack up nearly $1 billion in paper losses, according to data and analytics firm Ortex Technologies.
Reuters could not verify the screenshot and Gill did not respond to a request for comment on Reddit or email.
Reddit shares jumped 6.8%, while retail trader-focused brokerage Robinhood gained 5%.
GameStop raised $933 million by selling shares to cash in on a meme stock rally last month, when the stock doubled in value. Still, shares are nearly 50% below their May peak and down about 70% from 2021 highs.
"The eye-watering numbers might be tempting, but there are real risks involved," said Nigel Green, chief executive at independent financial advisor deVere Group.
The $7 billion company has been grappling with slowing sales as its core business of selling new and pre-owned videogame disks takes a hit from consumers moving to downloading games digitally or streaming.
It is expected to post first-quarter results on June 11. Last month, it warned that first-quarter net sales would drop to between $872 million and $892 million, from $1.24 billion a year ago.
Additional reporting by Amanda Cooper in London.
veryGood! (3855)
Related
- Review: 'Emilia Pérez' is the most wildly original film you'll see in 2024
- Abortion-rights groups see mixed success in races for state supreme court seats
- Car explosion damages homes and vehicles in Queens, New York: Video captures blaze
- Bill Self matches Phog Allen for most wins at Kansas as No. 1 Jayhawks take down No. 10 UNC
- 'Serial swatter': 18-year-old pleads guilty to making nearly 400 bomb threats, mass shooting calls
- Democrat Andrea Salinas wins reelection in Oregon’s 6th District
- Inter Miami vs. Atlanta live updates: Will Messi fend off elimination in MLS Cup Playoffs?
- Can the Chiefs deliver a perfect season? 10 big questions for NFL's second half
- Worker trapped under rubble after construction accident in Kentucky
- The Daily Money: Who pays for Trump's tariffs?
Ranking
- Pentagon secrets leaker Jack Teixeira set to be sentenced, could get up to 17 years in prison
- Horoscopes Today, November 8, 2024
- ACLU asks Arizona Supreme Court to extend ‘curing’ deadline after vote-count delays
- FBI, Justice Department investigating racist mass texts sent following the election
- November 2024 full moon this week is a super moon and the beaver moon
- Normani Details Her Wickedly Incredible Friendship With Ariana Grande
- 'My husband was dying right in front of me': Groom suffers brain injury in honeymoon fall
- Democracy was a motivating factor both Harris and Trump voters, but for very different reasons
Recommendation
-
Deion Sanders addresses trash thrown at team during Colorado's big win at Texas Tech
-
A Timeline of Brianna Chickenfry LaPaglia and Zach Bryan's Breakup Drama
-
Winnipeg Jets improve to 14-1, setting record for best NHL start
-
Horoscopes Today, November 8, 2024
-
Chris Pratt and Katherine Schwarzenegger welcome their first son together
-
FEMA: Worker fired after directing workers to avoid helping hurricane survivors who supported Trump
-
Cowboys QB Dak Prescott plans to undergo season-ending surgery, according to reports
-
Gov. Tim Walz vows to fight Donald Trump’s agenda while working to understand his appeal