GameStop and AMC Entertainment (NYSE:AMC) have again captured retail investors’ attention, reminiscent of “the meme stock frenzy” that gripped Wall Street three years ago, following social media posts from the leading figure behind that rally “Roaring Kitty”.
Here is what you need to know about the recent surge in meme stocks:
ROARING KITTY AND HIS SKETCH
Keith Gill, popularly known among traders as “Roaring Kitty”, shared a series of cryptic posts on social media platform X in May following a three-year gap. One of them included a sketch of a man leaning forward in a chair, a popular meme among gamers that indicates things are getting serious.
Earlier in the week, the online stock influencer posted a screenshot showing a $116 million bet on GameStop (NYSE:GME)’s shares, and announced on Thursday that he would host a livestream on Friday that was scheduled for 12 p.m. ET (1600 GMT).
With colourful YouTube streams and Reddit posts, Gill made the bull case for GameStop in 2021, helping attract a flood of retail cash into the company.
In Gill’s 2021 testimony to Congress, he denied the notion that he used social media to profit by promoting GameStop to unwitting investors.
GAMESTOP LEADS AGAIN, BUT STAYS CHOPPY
Videogame retailer GameStop has rallied more than 160% so far this year, as of last close. While theatre chain AMC Entertainment also climbed in tandem with other so-called meme stocks, it has since shed gains and is down more than 6% year-to-date.
