GameStop stock and AMC shares soared early Monday after Keith Gill, who sparked the meme stock rally during the pandemic, made his return to social media for the first time in three years.
X
Gill, known by his social media name Roaring Kitty, on Sunday night posted for the first time on social media platform X, for the first time since June 2021. The post was an image of a meme implying he is “getting serious.”
Gill rose to infamy in 2020 and 2021 as one of the key drivers for the GameStop (GME) short squeeze. The former financial broker and analyst was eventually called to testify in front of the House Financial Services Committee in February 2021 regarding a probe on potential market manipulation.
Retail investors celebrated with comments like “he’s back,” and “game on,” or “just in time for the memecoin supercycle,” in a reference to rising prices for smaller cryptocurrencies.
GME stock vaulted 32% premarket Monday following the post. GameStop shares were essentially flat on the year through Friday, closing at 17.46.
Theater chain AMC Entertainment (AMC) rallied 12% early Monday. AMC stock has dived nearly 53% in 2024 through Friday. Shares are not too far above their record low of 2.38 from April.
Previous Short Squeeze
Shares of GME stock surged 688% in 2021. Individual investors coordinated a buying spree in the video-game retailer’s shares using online message boards. The buying surge caught by surprise the short sellers who were betting the stock would fall. These “shorts” faced unlimited losses unless they bought the stock, further fueling gains.
It was an innovative and controversial way to push GME stock higher.
GME stock ironically went up because it fell so much. And a large share of investors thought it would fall more.
Coming into 2021, GME shares had lost a third of their value over the previous five years. Investors betting the stock would fall, the shorts, controlled GME stock shares in late 2019. That overly bearish bet set up a perfect environment for a massive short-squeeze rally.
The entire short squeeze saga was detailed in the movie “Dumb Money.”
You can follow Harrison Miller for more stock news and updates on Twitter @IBD_Harrison
YOU MAY ALSO LIKE:
Best Growth Stocks To Buy And Watch: See Updates To IBD Stock Lists
Looking For The Next Big Stock Market Winners? Start With These 3 Steps
Learn How To Time The Market With IBD’s ETF Market Strategy
Join IBD Live And Learn Top Chart Reading And Trading Techniques From Pros
Five Magnificent Seven Stocks In Focus
Jessica Roberts is a seasoned business writer who deciphers the intricacies of the corporate world. With a focus on finance and entrepreneurship, she provides readers with valuable insights into market trends, startup innovations, and economic developments.
