GameStop stock surges as “Roaring Kitty” claims sizeable stake in retailer

GameStop, the meme stock darling that captured the attention of Wall Street and Main Street investors alike in 2021, is once again making headlines. A social media post attributed to the investor known as “Roaring Kitty” has sent GameStop shares soaring, with the stock opening for trade on Monday priced above $40 apiece, up more than 70% from Friday.

The post, shared on a Reddit account linked to Keith Gill, claimed that he owned a sizeable stake in GameStop – 5 million shares, nearly 2% of the company’s stock, worth more than $100 million. This news comes after a period of silence from the Roaring Kitty accounts, adding to the intrigue surrounding the post.

While the veracity of the post could not be confirmed, the impact on GameStop’s stock price was immediate. The surge in GameStop shares also lifted other so-called meme stocks, such as AMC and Blackberry, on Monday.

The original rise of meme stocks like GameStop was attributed to the surge in savings and time many households had during the pandemic, as well as the shutdown of in-person activities. Retail investors, fueled by platforms like Charles Schwab and Robinhood, have continued to drive the trading activity in these stocks.

GameStop itself capitalized on the interest last month, raising $933 million in a share sale. However, the phenomenon of meme stocks has raised concerns in the financial industry and in Washington, with former SEC Chairman Jay Clayton likening it to gambling in a recent interview.

As GameStop continues to capture the attention of investors and regulators alike, the saga of the meme stock phenomenon shows no signs of slowing down.