GameStop Corp. (NYSE: GME) experienced a steady rise on Friday, with the stock climbing over 2.3% to close at $22. However, the real action began after the closing bell, as the stock embarked on a dramatic bullish rally in premarket trading.
By early premarket hours on Monday, GME surged by an astonishing 68%, reaching as high as $39. This surge was accompanied by a trading volume of 24 million shares, reflecting immense bullish sentiment in the extended hours.
Keith Gill’s Impact and Market Reaction
Keith Gill, known as DeepF— Value on Reddit and Roaring Kitty on X, played a significant role in this surge. His first post in three years on June 2 showcased a screenshot of five million shares bought at $21.27 each and 120,000 call options worth $65.7 million, set to expire on June 21.
Although the authenticity of this screenshot couldn’t be verified, it created a substantial buzz. Gill’s post included an image of an UNO reverse card, symbolizing a significant market move, and attracted around 5.5 million views in just nine hours.
Other stocks favored by retail traders also saw gains. AMC Entertainment Holdings Inc. rose by 36% in premarket trading, while SunPower Corp., Beyond Meat Inc., BlackBerry Ltd., and Reddit Inc. experienced notable increases.
Analysts Weigh In
The renewed interest in meme stocks like GameStop has drawn attention from analysts. Robert Lea, a Bloomberg Intelligence analyst, remarked, “Recent renewed interest in meme stocks, coming as the main US indices struggle to make new highs, is a sign of excessive overexuberance and is more likely a negative portent given the rising headwinds in the markets.”
Gill’s return to social media has reignited the enthusiasm of retail traders. His previous posts in 2021 spurred a massive rally, pushing GameStop’s stock up over 2,000%, and his recent activity suggests he may continue to influence the market. In his last Reddit post in April 2021, Gill held 200,000 GameStop shares, worth about $30.9 million at the time. Currently, he has an equivalent of 17 million long shares in GameStop, amounting to $391 million, representing 5.6% of the company’s market cap.
Conclusion
GameStop’s remarkable after-hours surge underscores the continued influence of retail traders and key figures like Keith Gill. As meme stocks regain momentum, market watchers remain divided on whether this represents a new opportunity or a sign of overexuberance in a volatile market.
