Monday, July 22, 2024
Home Personal Finance Who is Roaring Kitty and what’s going on at Gamestop?

Who is Roaring Kitty and what’s going on at Gamestop?

by xyonent
0 comment
Collegeinvestor 1200x628 How To Research Stocks.jpg.optimal.jpg
  • Keith Gill (Roaring Kitty/DeepFuckingValue) revealed a massive $181.4 million position in GameStop stock and call options, causing the stock price to skyrocket.
  • Gill’s return to social media last month had already sparked a rise in GameStop shares, but his recent portfolio disclosure reignited the “meme stock” craze, sending the stock soaring from $22.91 to more than $40 when the market opened on June 3.
  • Gill’s involvement in the GameStop fiasco dates back to 2019, when he invested $53,000 in the struggling retailer, garnering support from many individual investors, which led to a short sell-off in January 2021 and a surge in the stock price of more than 1,000%.

Keith Gill, aka “Roaring Kitty” and “Deep Fucking Value” (DFV), has reemerged after a three-year hiatus to reignite the frenzy over GameStop shares. Gill posted a screenshot: r/Superstonk forum on Redditrevealed it had a massive $181.4 million position in GameStop (GME) stock and call options.

The screenshots showed that Gill owned 5 million shares of GME stock, valued at $115.7 million, and held call options worth $65.7 million betting that GME’s stock price would reach more than $20 per share by June 21. The disclosure sent shockwaves through the market, with GameStop’s shares soaring more than 19% in overnight trading.

Gill’s return to social media last month had already sent GME shares soaring, with the stock hitting $48 before falling back, but his recently released portfolio has reignited the “meme stock” craze, sending GameStop shares soaring from $22.91 at the market’s open on June 3 to more than $40.

A Short History of GME and Roaring Kitty

Gill’s involvement in the GameStop debacle dates back to 2019, when he believed the embattled retailer was undervalued and invested $53,000 in it. His bullish analysis and regular updates on Reddit and YouTube garnered support from retail investors, leading to a short squeeze in January 2021 and sending GME shares soaring by more than 1,000%.

This whole series of events was called the battle between retail investors and hedge funds and the elite, and was eventually featured in a Netflix documentary. Eat the Rich: The Story of GameStop.

Fast forward to now, and Roaring Kitty has started posting memes on X, taking her position on Reddit.

Impact on GameStop stock price

GameStop (NYSE:GME) is known as a video game retailer with brick-and-mortar stores across the country. However, in recent years, many have argued that the company’s business model is in decline, and institutional investors have shorted the stock in anticipation of the company’s bankruptcy.

But interest surrounding the Roaring Kitty scandal has spurred significant interest in the stock.Over the last month, GME has risen 62%, while the S&P 500 has risen just 1.95%.

GME Stock Price

It will be interesting to see what happens over the next month, as June 21, 2024 is the expiration date for Gill’s most heavily held options. As the date approaches, volatility is likely to increase, and social media frenzy will likely build.

Don’t miss these other stories:

Top 5 Free Investing Apps for Beginners
Moby Finance Review: Jargon-Free Investment Research
30 Passive Income Ideas to Build Financial Wealth

You may also like

Leave a Comment

About Us

Investxyon

At InvestXyon, we empower individuals with knowledge for informed investing, financial navigation, and secure futures. Our trusted platform covers investments, stocks, personal finance, retirement, and more.

Feature Posts

Newsletter

Subscribe my Newsletter for new blog posts, tips & new photos. Let's stay updated!