GameStop shares soared before the US markets opened fuelled by rumours that Keith Gill, the man behind the pandemic meme stock frenzy, might be holding a large position of the retailer's shares potentially worth millions.
The video game retailer's stock has surged over 37% in early trading. Known as "Roaring Kitty" on platforms like YouTube and X, and as Deep F- - - - - - Value on Reddit, Gill caused a stir late Sunday when his Reddit account posted a screenshot in the r/SuperStonk forum. Speculation is rife that the image could reveal the shares and call options he owns in GameStop. According to the screenshot, Gill might possess 5 million GameStop shares valued at $115.7million based on Fridays closing price.
Additionally, the screenshot indicated he has 120,000 call options with a $20 strike price expiring on June 21, purchased at approximately $5.68 each. Moreover, Gill teased followers with a cryptic post on X, uploading an image of a reverse card from Uno on Sunday night without any accompanying text.
This flurry of activity marks roughly three weeks since Gill last made an online appearance, which had previously triggered a spike in GameStock's prices. In May, the "Roaring Kitty" account shared a meme on X depicting a man leaning forward in his chair, signaling serious gaming moments.
Gill's post on X was accompanied by a YouTube video from years ago where he advocated for the struggling company GameStop, stating: "That's all for now cuz I'm out of breath. FYI here's a quick 4min video I put together to summarize the $GME bull case."
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In 2021, GameStop was a floundering video game retailer grappling with the rapid shift from physical discs to digital downloads. Big Wall Street hedge funds and major investors were shorting its stock, expecting its shares to continue plummeting. However, Gill and those who shared his viewpoint altered the course of a company seemingly destined for bankruptcy by purchasing thousands of GameStop shares, despite almost all accepted metrics indicating the company was in dire straits.
This sparked what is referred to as a "short squeeze," forcing those big investors who had bet against GameStop to buy its rapidly rising stock to mitigate their colossal losses.
Other companies that experienced a surge due to the meme trend on Monday include cinema chain AMC Entertainment Holdings, which saw an increase of over 12%. Koss Corp., a headphone manufacturer, rose nearly 6%, and BlackBerry, the former smartphone giant, climbed more than 2%.
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