GameStop stock rises after Keith Gill’s key position revealed

Keith Gill reveals big investment in GameStop:

GameStop stock experienced a significant rally early Monday after Keith Gill, a prominent investor in the meme stock rally of 2021, revealed a substantial position in the video game retailer. The announcement sparked a rally in other meme stocks, including AMC Entertainment.

Gill’s return to social media:

Keith Gill, better known by his social media alias Roaring Kitty, resurfaced on Reddit and other platforms. On Sunday night, Gill posted on Reddit for the first time since early 2021, appearing to share a screenshot of a $181.4 million investment in GameStop stock and options. The post was made on the subreddit r/Superstonk, a departure from its usual r/wallstreetbets forum. However, there is some uncertainty as to whether this was indeed Gill’s posting.

Screenshot error:

A June 2nd screenshot shows Gale owns 5 million shares of GameStop stock, valued at $115.7 million, with an average price of $21.274 per share. Additionally, it shows 120,000 call options expiring on June 21, which give the right to buy GameStop stock at $20 per share. According to the screenshot, those options are worth $65.7 million.

Previous social media activity:

Gill previously hinted at a return to the trade on May 12 through a series of memes posted on X (formerly Twitter). However, most of the traders who joined the mid-May rally suffered losses till May 17.

Impact on GameStop and other meme stocks

goodGame stop stock increases

After Gill’s revelation, GameStop stock jumped nearly 50 percent after the market opened on Monday. The stock surged more than 74% in premarket trading, hitting more than $40 per share. GameStop has surged 91% this year amid renewed interest in meme stock.

AMC Entertainment follows suit

AMC Entertainment also saw a significant jump, rising 14 percent after a premarket gain of about 23 percent on Monday morning. Even so, AMC stock is down more than 12% in 2024, even with the recent Roaring Kitty-inspired rally.

Other meme stocks are on the rise

BlackBerry had a more modest gain, up 4 percent after a 4.7 percent premarket gain. However, the stock is down about 19 percent for the year. Robin Hood, the mobile broker, saw its shares rise 5.7 percent on Monday, giving it a 72.5 percent gain in 2024.

conclusion:

The re-emergence of Keith Gill and his leading position in GameStop has reignited interest in meme stocks, leading to notable gains in a number of related stocks. Although the market response has been positive, the sustainability of these gains is uncertain, reflecting the volatile nature of meme stock trading.