US Markets
Monday, June 3rd, 2024 3:26 pm EDT
Key Points
- GameStop’s Stock Surge: GameStop shares surged around 30% on Monday, driven by speculation that Keith Gill, the influencer behind the 2021 short squeeze, holds a significant position in the company. Trading was briefly halted due to volatility.
- Keith Gill’s Portfolio Reveal: Keith Gill, known as DeepF——Value on Reddit, posted a screenshot on Reddit’s r/SuperStonk forum showing he holds 5 million GameStop shares and 120,000 call options with a $20 strike price, expiring on June 21st. This sparked a renewed rally among retail traders.
- Impact and Broader Meme Stock Movement: Gill’s return to social media has reignited interest in meme stocks, causing shares of AMC to rise as well. GameStop capitalized on the May rally by raising over $900 million in a stock sale, despite ongoing challenges transitioning to online gaming under CEO Ryan Cohen.
GameStop’s stock surged on Monday following speculation that Keith Gill, the influential figure behind the 2021 short squeeze, may hold a substantial position in the company. Shares of GameStop soared by about 30% to approximately $30.26, with trading briefly halted due to volatility. The rally was sparked by Gill, known as DeepF——Value on Reddit and Roaring Kitty on YouTube and X, who resurfaced on Sunday night with a screenshot allegedly showing his portfolio. This snapshot, posted on Reddit’s r/SuperStonk forum, indicated that he holds 5 million GameStop shares valued at $115.7 million as of Friday’s closing price, along with 120,000 call options with a strike price of $20 expiring on June 21st. These options were reportedly purchased at about $5.68 each, while GameStop shares closed at $23.14 on Friday.
This information has not been independently verified by CNBC. Unlike his previous updates during the height of the GameStop mania over three years ago, Gill did not post on the WallStreetBets chatroom but used the same username. Additionally, he posted a cryptic image of a reverse card from the game “Uno” on X around the same time.
The resurgence of meme stock activity also benefited AMC, whose shares jumped 13% on Monday after climbing 48% in May. Gill’s return to social media three weeks prior had already sparked a significant rally in GameStop, with the stock more than doubling in May alone. His initial post, a simple picture of a man in a chair leaning forward, was enough to trigger a buying frenzy among amateur traders. GameStop capitalized on this rally by raising over $900 million through a stock sale.
Keith Gill, a former marketer for Massachusetts Mutual Life Insurance, gained notoriety in 2021 through his YouTube videos and Reddit posts, where he encouraged retail traders to squeeze short-selling hedge funds in GameStop. The resulting frenzy was so intense that brokerages, including Robinhood, had to restrict trading in the stock to manage clearinghouse margins. This mania led to a series of congressional hearings that featured Gill and examined brokerage practices and the gamification of retail trading.
Despite the renewed interest and rallies, GameStop continues to face challenges as it transitions from brick-and-mortar video game sales to online gaming. Investors are placing their hopes on CEO Ryan Cohen to successfully reinvent the company and navigate this significant shift in the gaming industry.
For the full original article on CNBC, please click here: https://www.cnbc.com/2024/06/02/gamestop-jumps-as-roaring-kitty-trader-posts-giant-116-million-stock-position.html
