Don’t be fooled. It’s not 2021 again. But, we don’t blame you if you think so.
The return of the stocks influencer Roaring Kitty has resulted in a massive 21% jump in GameStop (GME.N) shares earlier this week.
The catalystic investor went on Reddit to prove that he bet $116 million on the struggling video game retailer, sparking others to follow suit and resulting in the most recent run. In total, GameStop shares surged by as much as 75%, eventually closing at $28. By the time it was over, $4.7 billion worth of GameStop shares had been bought and sold.
Three years after the entire GameStop fiasco, GameStop shares once again became the most heavily traded stock on the New York Stock Exchange.
It doesn’t appear like Roaring Kitty is done just yet. After the regular trading day closed on Monday, Keith Gill revealed that he still owns his 5 million shares and 120,000 call options of GameStop.
According to data and analytics firm Ortex Technologies, GameStop short sellers lost nearly $1 billion because of Monday’s run.
Despite the most recent meme-fueled rally, GameStop’s best days are far behind it. Share values are down more than 70% from 2021.
The business itself is struggling to stay relevant as consumer behaviour has pivoted significantly toward digital purchases and streaming in recent years.