- GameStop stock jumps 6% after Keith Gill, aka Roaring Kitty, posts a cryptic image.
- Retail traders reignite enthusiasm for GameStop following the social media hint.
What happened: Cryptic post spurs GameStop surge
Shares of GameStop experienced a significant increase of 6% on Thursday following a cryptic post from Keith Gill, known online as “Roaring Kitty,” the influential figure behind the 2021 meme stock phenomenon. Gill’s post on social media platform X featured an image resembling a 2006 Time magazine cover, which sparked a flurry of speculation and buying activity among retail traders. This single post led to a surge in GameStop’s stock price, peaking at $30.87, and resulted in a trading volume 1.5 times higher than usual, with approximately 300,000 GameStop options contracts changing hands by the afternoon.
Also read: Ryan Cohen fined $1M for failing to report share acquisition
Also read: GameStop shares tumble after CEO says store network will shrink
Why it is important
The reaction to Roaring Kitty’s post underscores the power of social media and individual influencers in driving market movements, particularly among retail investors. This event highlights the continuing trend of meme stocks being influenced by online communities and personalities. The surge in GameStop’s stock price and options trading volume indicates a resurgence of interest in meme stocks, which could signal a broader shift in market dynamics where social media cues from key figures like Gill can lead to significant financial activities. This phenomenon also demonstrates the potential for individual investors to impact stock prices, challenging traditional financial narratives and market structures. The impact of such events on investor sentiment and market volatility underscores the evolving nature of investment strategies in the digital age, where social media platforms are increasingly influential in shaping investor behavior and market trends.
