Meme Stock: Gamestop Shares Soared Up to 118% in Early Trading in New York
Gamestop shares doubled in value yesterday after the social media account that sparked its original ‘meme stock’ status resurfaced after three years of silence.
Shares of the computer games retailer surged as much as 118 percent in early trading in New York after Keith Gill, known online as ‘Roaring Kitty,’ posted a drawing of a man leaning forward in a gaming chair .
The financial analyst and investor later published two more posts on X, formerly known as Twitter, that suggested 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 of Gamestop stock.
The so-called “meme stock” phenomenon involves retail investors targeting bearish short sellers and hedge funds, forcing them to cover their short positions and drive up the price.
The mania took Gamestop shares to over $120 per share in early 2021 from as low as $3 in the space of three months.
The stock eventually fell, but the episode inspired the 2023 film Dumb Money.
Other companies targeted were US home goods retailer Bed, Bath & Beyond and Odeon Cinemas owner AMC.
Analysts said the rise in meme stocks came because households had more time and money during the pandemic.