GameStop Corp. (NYSE: GME) experienced a dramatic surge on Thursday, fueled by the influence of meme investor “Roaring Kitty,” also known as Keith Gill. The stock saw an extraordinary 47% jump, closing Thursday with a significant gain.
The momentum continued into the early premarket hours on Friday, with GME rising another 31%. By early Friday, the stock traded as high as $60.71, more than double its price from the previous day, which was below $32.
Market Frenzy and GameStop Volume Spike
The excitement around GameStop was palpable as trading volume reached an impressive 187 million shares, six times its average. This heightened activity reflects the substantial market hype surrounding Gill’s return to social media.
After a three-year hiatus, Gill’s announcement of a YouTube livestream scheduled for 12 p.m. ET on Friday caused a renewed interest in GameStop. Investors quickly flocked to the stock, reminiscent of the 2021 rally led by individual investors on Reddit’s WallStreetBets forum. As anticipation grew, over 10,000 YouTube users expressed interest in his upcoming livestream within minutes of his post.
GameStop Impact on Other Meme Stocks
The ripple effect of Gill’s return was not confined to GameStop alone. Shares of other meme stocks, including AMC Entertainment, BlackBerry, and Koss Corp, saw gains ranging from 6.1% to 13% on Friday.
The broader impact of Gill’s influence highlights the continued power of social media and individual investors in driving stock movements. Despite the lack of specifics about his new positions, Gill’s return to the spotlight spurred speculation and excitement among retail investors.
Conclusion: Short Sellers Face Heavy Losses
Thursday’s rally significantly impacted short sellers, who faced nearly $1 billion in mark-to-market losses, bringing their total losses for the month to approximately $1.36 billion, according to S3 Partners. While options activity was high, the ratio of bullish to bearish bets did not indicate a massive influx of day traders.
Remarkably, call contracts with a strike price of $128, expiring on June 14, were among the most traded. As GameStop’s stock continues to climb, driven by social media influence and speculative fervor, the financial community remains on high alert for Gill’s next move.
