GameStop stock soars after 'Roaring Kitty' reveals $175 million bet on the retailer

GameStop's stock price increased by as much as 75% at the market open following the Reddit post by Roaring Kitty.

Keith Gill, also known as Roaring Kitty, took several actions that led to the surge in GameStop's stock price. In 2019, Gill began promoting his idea that GameStop was being undervalued on social media platforms such as YouTube, Reddit, and X (formerly Twitter). He used the handle "Roaring Kitty" on YouTube and Reddit, and shared his thoughts on GameStop's potential growth, focusing on the company's legacy business of selling used games and equipment. Gill's posts and livestreams discussing his investment research and day trading strategies gained a significant following, particularly on the WallStreetBets subreddit.

In January 2021, GameStop's stock price soared as retail investors, inspired by Gill and other influencers, began buying up shares, causing a short squeeze that further drove up the stock's value. At the height of this surge, Gill's GameStop stock holdings, which he initially purchased for $53,000 in 2019, were valued at $48 million.

After a hiatus from social media, Gill re-emerged in May 2024, posting a series of cryptic messages and memes on his Roaring Kitty account. This sparked renewed interest in GameStop, and the stock price surged once again. In June 2024, Gill posted a screenshot on Reddit, revealing a GameStop holding worth over $115 million and call options worth over $65 million. This disclosure caused GameStop's stock price to double briefly and led to significant gains for the company's share value.