On June 3, 2024, GameStop Corp. shares soared as much as 103% in premarket trading, reflecting a significant resurgence in investor interest. The dramatic increase came after a notable Reddit user, Keith Gill, known as DeepF— Value, posted a screenshot revealing a substantial $116 million position in the game retailer. This marked Gill’s first post in three years, reigniting the meme-stock frenzy that originally took the market by storm in 2021.
Recent renewed interest in meme stocks, coming as the main US indices struggle to make new highs, is a sign of excessive over exuberance and is more likely a negative portent given the rising headwinds in the markets.
Robert Lea, Bloomberg Intelligence Analyst Gill’s screenshot, shared on June 2, showed the purchase of five million GameStop shares at $21.27 each. Additionally, the post highlighted 120,000 call options worth $65.7 million, set to expire on June 21, which would allow Gill to buy the stock at $20 per share. The authenticity of the screenshot couldn’t be independently verified.
GameStop shares experienced a significant boost in premarket trading, with their value doubling before stabilizing. If these gains persist, GameStop’s market capitalization is poised to increase by approximately $8 billion. On the social media platform X, Gill, also known by his handle “Roaring Kitty,” posted an image of a UNO reverse card, symbolizing a pivotal moment. This post garnered over 5.3 million views within eight hours of its publication.
Robert Lea, an analyst at Bloomberg Intelligence, commented on the situation, suggesting that the renewed interest in meme stocks amid struggling US indices might indicate market volatility and rising headwinds. Lea noted, “Recent renewed interest in meme stocks, coming as the main US indices struggle to make new highs, is a sign of excessive over exuberance and is more likely a negative portent given the rising headwinds in the markets.”
Gill’s return to social media has been marked by significant activity, following a long period of silence after his 2021 rallying cry to day traders on Reddit. In mid-May, he hinted at his return with an image of a video gamer, sparking speculation among investors. Since his return, GameStop shares have fallen over 50% following a two-day rally triggered by his mid-May post.
The resurgence of GameStop shares following DeepF— Value’s post underscores the ongoing impact of social media on stock market dynamics.
Financial Analyst In his last Reddit post on April 16, 2021, Gill shared a screenshot showing he held 200,000 GameStop shares, valued at approximately $30.9 million at the time. His recent activity has once again thrust GameStop into the spotlight, highlighting the enduring influence of social media on stock market dynamics.
As the situation unfolds, investors and analysts alike will be closely monitoring the impact of Gill’s latest move on GameStop’s stock and the broader market.
