GameStop shares gain after meme stock influencer reveals $116 million bet

Keith Gill, also known as "Roaring Kitty," contributed to the surge in GameStop's stock price on Monday by revealing in a Reddit post that he had bought nearly $116 million worth of the stock. This was Gill's first post on his Reddit account in over three years, and his influence as a stocks influencer on social media platforms like Reddit and X has been linked to significant fluctuations in GameStop's stock value in the past2. Gill's actions sparked renewed interest in GameStop shares among traders, leading to a 21% increase in the company's stock price on Monday.

The broader consequences for other companies mentioned as meme stocks, such as Bed, Bath and Beyond, were significant. These companies experienced a sharp rise in their stock prices due to the dramatic influx of retail investors into their shareholder base25. This phenomenon, known as the "meme surge," led to increased attention and volatility for these companies' stocks.

In the case of Bed, Bath and Beyond, the meme stock frenzy led to a temporary boost in the company's stock price. However, it is important to note that the price surge was not driven by improvements in the company's financial performance or fundamentals. Instead, it was primarily driven by social media hype and retail investor sentiment.

The meme surge also had implications for corporate governance. The sudden influx of retail investors and the coordinated buying campaigns raised questions about the role of social media in influencing stock prices and the potential for manipulation. Additionally, the meme surge highlighted the need for a broader research agenda to explore the concrete effects of meme investing on corporate governance outcomes.

Overall, the meme stock phenomenon, including the impact on companies like Bed, Bath and Beyond, offers a valuable opportunity to study the role retail investors play in modern markets and in governance. It is important to consider the longer-running technological changes that have driven these recent events and to evaluate the potential consequences for companies and investors alike.