GameStop shares surge as ‘Roaring Kitty’ trader posts account showing $116 million position
What recent activity did Keith Gill, known as DeepF------Value on Reddit and Roaring Kitty on YouTube and X, engage in that affected GameStop's stock?
Keith Gill, known as "Roaring Kitty" on YouTube and "DeepF------Value" on Reddit, recently resurfaced on social media after a three-year hiatus, which sparked a renewed interest in GameStop's stock6. Gill posted a sketch of a man leaning forward in a chair, a popular meme among gamers that indicates things are getting serious. This post marked his first activity on X, earlier Twitter, since 2021. Following his post, shares of GameStop jumped 50% on Monday, reaching a one-year high.
In addition to this, Gill shared a screenshot of what could be his portfolio holding a significant amount of GameStop common shares and call options. According to the account snapshot posted on Reddit's r/SuperStonk forum, Gill holds 5 million shares of GameStop worth $115.7 million as of Friday's closing price. The account also showed a position of 120,000 call options in GameStop with a strike price of $20 that expire on June 21st that were purchased for about $5.68 each.
This isn't the first time Gill's social media activity has affected GameStop's stock. In 2021, his posts on Reddit's WallStreetBets discussion group about the gains he had made on his investments in GameStop drove a surge of interest in the stock, leading to a short squeeze that saw shares surge as much as 21-fold over two weeks in January 2021 before crashing to pre-surge levels in the subsequent days.
How many GameStop shares does Keith Gill reportedly hold according to the screenshot posted on Reddit's r/SuperStonk forum?
According to the screenshot posted on Reddit's r/SuperStonk forum, Keith Gill reportedly holds 5 million shares of GameStop.
What was Keith Gill's role during the 2021 GameStop trading frenzy, and how did it impact hedge funds?
Keith Gill, known by his online aliases "Roaring Kitty" on YouTube and "DeepF------Value" on Reddit, played a crucial role in the 2021 GameStop trading frenzy. Gill, a former marketer for Massachusetts Mutual Life Insurance, used his online platforms to share his investment philosophy and promote GameStop as an undervalued stock. He believed that the company's legacy business of selling used games and equipment was being undervalued amidst the shift to digital gaming.
Through his YouTube videos and Reddit posts, Gill encouraged a group of retail traders to buy GameStop shares, which led to a massive short squeeze. A short squeeze occurs when short sellers, who borrow shares to sell them with the intention of buying them back later at a lower price, are forced to buy shares at higher prices due to a sudden increase in demand. This drives the stock price even higher and can cause significant losses for the short sellers.
In the case of the GameStop frenzy, Gill's influence led to a surge in the company's stock price, which rose from around $19 per share at the start of January 2021 to a peak of over $380 per share. This rapid increase in value caused big losses for established hedge funds that had heavily shorted the stock, expecting it to decline2. The situation drew widespread attention and even prompted congressional hearings to discuss the role of brokerages and the gamification of retail trading.
Gill's actions during the GameStop trading frenzy demonstrated the power of social media and online communities in influencing financial markets. His return to social media in 2024 sparked renewed interest in GameStop, with the stock price once again soaring in response to his posts.