Meme Stock: Gamestop Almost Doubled in Early Trading and Up About 24% Last Night
Meme stock mania took over the trading floors yesterday as Gamestop shares soared.
The video game retailer nearly doubled in early trading and was up about 24 percent last night. The rally came after Roaring Kitty, a social media account run by financial influencer Keith Gill, revealed a £91m stake in the group.
The screenshot, posted on the Reddit site, suggested Gill could own up to 5 million shares of the company, fueling investor confidence in the stock.
Gill was one of the most notorious traders of the pandemic era, driving a buying spree of Gamestop shares three years ago. With his help, the stock rose above $120 in early 2021 from just $3 in the space of three months.
Gamestop shares ultimately fell in 2021, but the episode inspired the movie Dumb Money.
Meme stocks are those backed by ordinary investors that pool online to boost the value of companies that hedge funds are betting against through so-called “short selling.”
When stocks rise and more investors pile in, hedge funds incur huge losses.
