Shares of GameStop soared out of the gate Monday, with the stock price increasing more than 70% in the first 45 minutes of trading.
No need to check your calendar. It’s not 2021. But the reason for the surge was the same as the year the retailer became the first meme stock: An individual investor who goes by the name Roaring Kitty.
Keith Gill, who has been silent on social media for the past three years—and whose evangelism for GameStop shares led to a massive run-up in the stock—posted an image Sunday. And that was enough to mobilize the meme stock army.
The volatility led to trading in the stock being halted several times early Monday. In mid-morning trading, GameStop was up 86% at $32.50 after soaring as high as $38.20 intraday.
The image showed a man sitting forward in his chair, a meme that gamers often use when things get serious. The post was followed up by a YouTube video lionizing GameStop that was made many years ago.
Gill has not resumed posting on Reddit, where he was an oft-followed member of r/WallStreetBets.
Shares are still well below their 2021 peaks, when the price reached as high as $483, but they were approaching 52-week highs a few minutes after trading opened. Year to date, GameStop shares are up more than 60%. That’s despite reporting fourth-quarter earnings at the end of March that were far below analyst expectations and revenues of just $1.79 billion, nearly $500 million less than the year before.
The return of Gill, who was the inspiration for the film Dumb Money, throws a hand grenade into analyst projections, though. And his loyal fans celebrated his return.
Look who’s back 👀
— JustDario 🏊♂️ (@DarioCpx) May 13, 2024
Hedge Funds reaction… 🤭 https://t.co/GCHFbgAzBKpic.twitter.com/Y39ldHlydB
3 years ago this man changed the world and now he’s back
— greg (@greg16676935420) May 13, 2024
Buckle up https://t.co/OAejjBtB5Vpic.twitter.com/2MfNltwyUK
I’m going to tell my kids this was Warren Buffett. Pic.twitter.com/7HVOVqurMG
— Douglas A. Boneparth (@dougboneparth) May 13, 2024
JUST IN: @TheRoaringKitty has gained 100K followers in less than 24 hours after returning to 𝕏.
— Radar🚨 (@RadarHits) May 13, 2024
We like the account… pic.twitter.com/ZoE5enOuKi
Just as with the last run-up in GameStop stock, some buyers appear to be targeting short sellers, who have been betting against the company. Analytics firm Ortex said the stock’s price gain has resulted in short sellers losing over $800 million since the beginning of May.
The bigger question, of course, is whether investors have the patience for a true meme stock rally this time around. The last time Gill led the charge on GameStop, most retail investors were working from home as the pandemic kept them away from work. Many have presumably returned to the office at this point, which could interfere with their trading habits.