Shares in GameStop, AMC Entertainment, and other meme stocks experienced a rollercoaster ride during premarket trading on Friday following the announcement of a livestream by Keith Gill, also known as “Roaring Kitty,” who is credited with kickstarting the original meme stock craze. GameStop shares fell by 15% to $40 in premarket trading after the retailer reported poor sales and a $3 billion stock offer, erasing earlier gains. Gill scheduled his first livestream in years for 12 p.m. ET on Friday, which sparked interest among traders in other meme stocks like AMC Entertainment Holdings, BlackBerry, Bed Bath & Beyond, and Koss.
In addition to GameStop and AMC, other meme stocks like Faraday Future and Tupperware also saw volatile trading during premarket hours, with some experiencing gains while others observed losses. Trading platform Robinhood, known for popularizing meme stocks among retail investors, also saw its own shares rise in regular and premarket trading, potentially influenced by news of a deal to acquire crypto exchange Bitstamp. Gill, who is known for his influential presence on social media and online trading forums, has faced criticism for his role in fueling the investor mania surrounding meme stocks and has defended his content as being for educational purposes only.
Gill, who goes by the pseudonymous usernames “Roaring Kitty” and “DeepFuckingValue” on various platforms, is a former financial analyst who played a significant role in sparking the meme stock frenzy of 2021. Despite facing backlash, he has returned to social media with posts revealing his substantial position in GameStop, sparking renewed excitement among traders. The upcoming livestream by Gill has generated significant interest, with thousands of viewers already waiting for the broadcast to begin. While the specific topic of the livestream has not been disclosed, previous broadcasts have involved Gill discussing market movements, revealing his positions, and explaining his investing philosophy.
The original meme stock rally in 2021 was characterized by surges in stock prices driven by online communities and social media influencers like Gill. While some stocks experienced temporary spikes, GameStop has seen more lasting benefits from the increased interest. Traditional investors and analysts have viewed the meme stock phenomenon as being fueled by hype rather than traditional metrics like profit, leading to volatile and unpredictable movements in share prices. Gill’s upcoming broadcast has also influenced the rise of a GameStop-inspired cryptocurrency, GME, which has seen a significant increase in value over the past week.
Overall, the resurgence of meme stocks and the anticipation surrounding Gill’s livestream demonstrate the continued influence of online communities and social media on stock market trends. While the meme stock phenomenon may be viewed as unconventional by some, it highlights the power of retail investors and the impact of social media influencers in shaping market movements. Gill’s return to the spotlight has reignited interest in stocks like GameStop, prompting a new wave of trading activity and speculation among both retail and institutional investors.
