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GameStop Corp. (NYSE: GME) experienced a remarkable surge, doubling in value after a notable social media post from the internet personality who once stirred the meme-stock frenzy.
Keith Gill, famously known as “DeepF—— Value” on Reddit, revealed what appeared to be a colossal $116 million investment in the video game retailer, showcasing his unwavering confidence in GameStop’s potential.
On June 2, Gill’s Reddit post included a screenshot illustrating his purchase of five million GameStop shares at $21.27 each, marking his first post in three years. The image also displayed 120,000 call options worth $65.7 million, set to expire on June 21 and enabling him to buy the stock at $20 per share. While the authenticity of the screenshot remains unconfirmed, it sent ripples through the premarket trading, propelling GameStop’s shares up by as much as 105%. Should these gains persist, GameStop stands to amplify its market capitalization by roughly $8 billion.
Gill, also known by his Twitter handle “Roaring Kitty,” has a knack for engaging content, this time featuring a UNO reverse card image, symbolically flipping the market fortunes. His post quickly garnered attention, racking up 5.5 million views within nine hours of its publication on Sunday evening.
Moreover, the fervor spilled over to other retail-favorite stocks. AMC Entertainment Holdings Inc. (NYSE: AMC) saw an upswing of up to 36% in premarket trading. SunPower Corp. (NASDAQ: SPWR), Beyond Meat Inc. (NASDAQ: BYND), BlackBerry Ltd. (NYSE: BB), and Reddit Inc. also rode the wave of optimism.
“Renewed interest in meme stocks amid the sluggish pace of major US indices hints at overexuberance,” opined Robert Lea, a market analyst. “This exuberance could signal troubling times ahead given the rising market headwinds.”
Gill’s actions are reminiscent of his legendary 2021 campaign, where he rallied Reddit’s retail traders against short sellers, hoping to recreate GameStop’s glory as a premier gaming hub. His recent return to market discussions in mid-May, teased by a video gamer image post, reignited speculation about his next moves. In 2021, his influence was monumental, with GameStop shares skyrocketing over 2,000%, cementing the meme-stock phenomenon in financial history.
