Meme stock: Gamestop shares surged as much as 118% in early trading in New York
Gamestop shares doubled in value yesterday after the social media account that sparked its original ‘meme stock’ status resurfaced after three years of silence.
Shares in the computer game retailer surged as much as 118 per cent in early trading in New York after Keith Gill, known as ‘Roaring Kitty’ online, posted a drawing of a man leaning forward on a gaming chair.
The financial analyst and investor later published two more posts on X, formerly known as Twitter, which suggested he was making a comeback.
Gill, 37, was one of the biggest names among pandemic-era traders that shared tips online and fuelled a buying spree of Gamestop shares.
The so-called ‘meme stock’ phenomena involves retail investors taking aim at short sellers and hedge funds who are pessimistic and forcing them to cover their short positions and drive up the price.
The mania drove Gamestop’s stock above $120 a share in early 2021 from as little as $3 in the space of three months.
Shares eventually fell back but the episode inspired the 2023 film Dumb Money.
Other firms targeted included American homeware retailer Bed, Bath & Beyond and Odeon Cinemas owner AMC.
Analysts said the rise of meme stocks came as households had more time and money during the pandemic.
