Investors cheer the return of Roaring Kitty by sending GameStop up 74%
Just when investors seemed to be regaining their rationality, GameStop spiked over 60% in a single day, and all it took was a single tweet from Roaring Kitty, a.k.a. Keith Gill — the man who famously kicked off the meme rally. The tweet, which shows a meme of a man leaning forward in his chair, marks his first post in nearly three years. But this time, investors can’t rely on the same catalysts that sent GameStop to the astronomical levels of 2021.
- According to S3 Partners, the percentage of shares sold short stands at 24%, a significant drop from 140% in 2021 (BBG).
- Retail investors also lack a common adversary: hedge fund Melvin Capital, which closed its doors after losing billions from shorting GameStop.
For what it’s worth: Before May, had plummeted over 90% in value since 2021, sinking from a peak of $120.75 when meme stock trading was in full swing to just $9.95. And the gaming industry isn’t experiencing the same boom it did during the height of COVID-19 — when game and console sales skyrocketed. In its latest earnings report, GameStop attributed its 19% sales decline to weakened consumer spending and the ongoing shift of game sales to online platforms, leading to several rounds of layoffs. But by now, we know that meme stocks don’t trade on fundamentals. Whether those jumping in late are aware of this fact remains uncertain.
Read: GameStop’s return reignites retail trading to pre-pandemic levels
