Meme stocks: Gamestop shares rose as much as 118% in early trading in New York
Gamestop shares doubled in value yesterday after the social media account that caused the original ‘meme stock’ status resurfaced after three years of silence.
Shares of the computer game retailer soared as much as 118 percent in early trading in New York after Keith Gill, known as “Roaring Kitty” online, posted a drawing of a man leaning forward on a gaming chair.
The financial analyst and investor later published two more posts on X, formerly known as Twitter, suggesting he was making a comeback.
Gill, 37, was one of the biggest names among pandemic-era traders who shared tips online and fueled a buying spree in Gamestop shares.
The so-called “meme stock” phenomenon involves retail investors targeting short sellers and hedge funds who are pessimistic, forcing them to cover their short positions and drive up the price.
The mania pushed Gamestop stock above $120 per share in early 2021, from just $3 in a span of three months.
The shares eventually fell, but the episode inspired the 2023 film Dumb Money.
Other companies targeted included US retailer Bed, Bath & Beyond and Odeon Cinemas owner AMC.
Analysts said the rise of meme stocks came as households had more time and money during the pandemic.