GameStop Stock Jumps 74% as Roaring Kitty Returns with Meme Stock.

Keith Gill, famously known as "Roaring Kitty," has made a remarkable comeback online after three years, triggering a substantial 74% surge in GameStop shares and other meme stocks.

Who is Keith Gill?

In 2021, GameStop, a video game retailer facing challenges from digital downloads, was on a downward trend, with major investors betting against its stock. Keith Gill and fellow retail investors turned the tide by buying GameStop shares, igniting a historic rally. This move led to a "short squeeze," forcing short sellers to buy shares at escalating prices to cover their losses.

GameStop Shares Gained 74%

On Monday, GameStop shares surged dramatically, more than doubling at market open and closing with a remarkable 74% gain, the largest intraday rise since the early 2021 meme stock frenzy. This upward momentum spilled over to other meme stocks, with AMC jumping 78%, and smaller gains seen in companies like Koss Corp. and BlackBerry.

The extreme volatility led to trading being halted eight times before noon. Keith Gill, known as a folk hero on the Reddit forum Wallstreetbets, spurred a David vs. Goliath narrative against large hedge funds betting against GameStop. This grassroots movement propelled GameStop's stock from under $20 to nearly $400, resulting in estimated losses of $5 billion for major hedge funds such as Citron Research and Melvin Capital, according to the Associated Press.

Earlier this month, interest in meme stocks reignited, with GameStop and AMC showing significant gains. GameStop even reported its first annual profit since 2018. However, the long-term success of Ryan Cohen’s plan to shift the company toward digital sales remains uncertain, according to the report.

The short positions against GameStop have notably decreased from over 140% of tradable shares in 2021 to just over 24% now. Despite profiting from the rally, Keith Gill testified in a Congressional hearing that his actions were not aimed at manipulating the stock price, famously stating, “I like the stock," as per the report.

Despite stepping away from public forums after a 2021 video, Gill's influence remains strong in the stock market, evident in the recent trading surge. His story and the broader meme stock saga were depicted in the film “Dumb Money" last year, the report added.

What are the potential implications for Crypto?

Roaring Kitty's comeback sparked a trend among social media influencers like Andrew Tate, who decided to shift from Bitcoin to GameStop stock and meme coins. Tate announced plans to sell $500,000 worth of Bitcoin to participate in the latest GameStop short squeeze.

The apparent reemergence of Roaring Kitty has stirred significant activity within the GameStop community and crypto world, leading to a surge in interest in meme coins on Solana and igniting broader movements in the meme coin market. On the day in question, meme coins like Dogecoin, Shibu Inu, and Pepe experienced notable gains of 5.7%, 5.0%, and 15.4%, respectively, contributing to a 5.4% overall increase in the meme coin market. This frenzy likely contributed to an almost 8% intraday rise in the price of Solana, which climbed from $138.16 to $149.99 on Monday.

The catalyst for this market activity appears to have been a series of video posts linked to Roaring Kitty. The implication is that if Gill—or whoever currently controls the @TheRoaringKitty Twitter account—begins tweeting directly about stocks or crypto, the markets could see even more explosive movements. This scenario underscores the influential role of social media and individual personalities in shaping contemporary financial markets, particularly within the realm of meme stocks and cryptocurrencies.