GameStop’s stock surges as ‘Roaring Kitty’ returns, igniting meme stock rally

Shares of GameStop surged 70% on Monday as “Roaring Kitty” returned to social media after a three-year hiatus, sparking a renewed interest in meme stocks. The former marketer at an insurance firm, credited with igniting the 2021 meme stock rally, saw GameStop’s shares hit an 18-month high at $38.20, leading to multiple halts for volatility.

The rally in GameStop also boosted other meme stocks that have been struggling over the past year. AMC, the theater chain, jumped 27%, while Koss Corp, the headphones maker, soared 23%.

Keith Gill, known as “Roaring Kitty” on YouTube and “DeepF***ingValue” on Reddit, was a key figure in the Reddit rally that saw GameStop shares surge dramatically in January 2021 before crashing back down. Gill’s cryptic post on social media on Sunday, his first in years, hinted at a potential resurgence in meme stock interest.

Despite the surge in GameStop’s stock price, experts warn that there is no fundamental change in the company’s financials. The meme stock phenomenon of 2021 was fueled by retail investors banding together on social media platforms like Reddit to squeeze bearish hedge funds.

Short sellers of GameStop were set to lose $1.23 billion on Monday, according to analytics firm Ortex. Options activity in the stock has also been on the rise since the beginning of May, with open interest in call options hitting a yearly high.

While the meme stock rally of 2021 may not be sustainable in the long term, the return of “Roaring Kitty” to social media has reignited interest in GameStop and other meme stocks, causing a surge in their prices.