The scourge of Reddit day traders has made its comeback on Wall Street. On May 13th, GameStop’s value exploded as the meme stock caught the attention of traders once again.
But how did the near-defunct retailer get this boost? But more importantly…
Is it here to stay?
What Brought Back GameStop’s Meme Stock Status
Three years after the original notorious short-squeeze…
Meme stock aficionados boosted GameStop’s value over 100% of its original price.
The reason for the sudden interest? The man responsible for the first wave of GameStop frenzy in 2021 started posting again after a three-year hiatus.
Keith Gill, otherwise known as Roaring Kitty online, posted an image on X of a video gamer intensely focused on a game. This was the first post Gill had made on any platform since his rise to prominence among novice day traders.
THE POST REACHED 63,000 LIKES IN 13 HOURS, TRIGGERING ANOTHER CRAZE FOR GAMESTOP AS A MEME STOCK.
Once the fever caught on, Gamestop’s value soared to a high of 119% before ending the day at 78%. Multiple times throughout the day, however, trading had to be paused due to the stock’s volatility.
And it wasn’t just GameStop reaping the rewards of this newfound attention. AMC, another company that received the meme stock treatment saw its value go up 78.4%. Reddit, the site that popularized AMC and GameStop as meme stocks, also saw inflated value, up by 7%.
With the recent attention and boost, the question remains:
Can these companies keep people’s attention long enough to benefit from meme stock hysteria?
Next Steps For Day Traders
The man who re-inspired the interest in GameStop as a meme stock is not commanding an army to do his bidding…
In fact, his followers are just as confused about his actions as the next guy.
Since his original post, Roaring Kitty has been uploading gifs and videos from different TV shows and movies…
With no real indication as to what they mean…
AND NO INDICATION OF WHAT ELSE HE’S GOT UP HIS SLEEVE.
As for GameStop, the company wasn’t doing too hot before traders sank their claws into the meme stock for the second time. Last month the company hit a three-year low, trading at $9.95 per share.
On top of that, the company reported that its revenue in the fourth fiscal quarter was $1.79 billion…
Down from $2.23 billion in the same quarter one year ago.
Investing is always going to be a gamble, you never know what the next hot stock is going to be.
But when it comes to meme stocks like GameStop, AMC, and Reddit, it’s not just a guessing game…
It’s all up to pure chance.
Be Great,
GCTV Staff
Disclaimer: This content is intended to be used for educational and informational purposes only. Individual results may vary. You should perform your own due diligence and seek the advice from a professional to verify any information on our website or materials that you are relying upon if you choose to make an investment or business decision. Investment, real estate, and business involve great risk and there is no guarantee of performance or results.We are not attorneys, investment advisers, accountants, tax professionals or financial advisers and any of the content presented should not be taken as professional advice. We recommend seeking the advice of a financial professional before you invest, and we accept no liability whatsoever for any loss or damage you may incur.
