Gamestop Shares Surge 70% as Roaring Kitty Returns to Social Media

Gamestop shares climbed by 70% today, representing the most significant gain since 2021, triggered by a mysterious social media post from Roaring Kitty, the figurehead of the earlier meme stock and Wall Street Bets craze. This sharp rise in the stock’s value occurred alongside pronounced trading instability and numerous suspensions.

The Return of Roaring Kitty Sparks GME Surge

The revival of Gamestop’s stock commenced early Monday when Keith Gill, widely known as Roaring Kitty, ended a three-year hiatus with a fresh post on X, previously known as Twitter. His cryptic image depicting a gamer in a forward-leaning posture, sparked renewed enthusiasm among individual investors, propelling the stock to an 18-month peak exceeding $38. As of 12:30 p.m., the price of GME hovers between $29 to $30 per share.

GME ripped to a high above $38 per share on Monday and the stock’s trading was halted several times. The Kobeissi Letter reports that GME short sellers lost $1 billion in the first hour of trading.

Roaring Kitty’s impact dates back to 2021 when his and the Wall Street Bets subreddit’s vigorous support for Gamestop ignited a retail trading wave, challenging hedge funds and short sellers. This collective action by individual investors, aimed at pressuring short positions, resulted in substantial increases in the stock price and heavy losses for hedge funds like Melvin Capital, which necessitated a multi-billion dollar rescue by larger financial firms, including Citadel and Point72.

Despite the boost in stock value, many are doubtful about the long-term sustainability of Gamestop’s surge, pointing to the lack of fundamental improvements in Gamestop’s business operations, which continue to grapple with heightened competition from digital markets. The company recently noted a drop in quarterly revenues and has initiated layoffs to decrease expenses, signaling persistent struggles within its business model.

The excitement on Wall Street concerning GME shares has further extended into the cryptocurrency sector. The token wall street bets (WSB) climbed nearly 20% following the news, and a Solana-based coin named GME surged over 1,700%. The coin wall street baby, also marked as WSB, experienced triple-digit gains due to the overflow from the GME movement. At this moment, GME shares on the New York Stock Exchange (NYSE) are still up over 173% this month.

What do you think about the GME surge on Wall Street and the return of Roaring Kitty? Share your thoughts and opinions about this subject in the comments section below.