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    GameStop Stock Soars as ‘Roaring Kitty’ Announces Livestream, Sparking Investor Frenzy

    Business And Money 4 Mins Read

    This soap opera is only just beginning as it is a man vs the machine of Wall Street and big money.

    GameStop (GME) stock surged after a YouTube account, believed to be associated with investor Keith Gill—known as “Roaring Kitty” on social media—scheduled a livestream for Friday at noon ET. This announcement sent the video game retailer’s shares soaring 33% in pre-market trading on Friday, following a 47% increase during Thursday’s session.

    On Thursday, after the market closed, Reddit user DeepF***ingValue, an account previously linked to Gill, posted a new screenshot showcasing their portfolio, which had swelled to $586 million, including GameStop stock holdings and unexercised options positions. Earlier in the week, the same user disclosed a $175 million investment in GameStop, which had appreciated to about $210 million, prompting another surge in the stock.

    Friday’s livestream would mark Gill’s first live appearance on the channel since he played a pivotal role in sparking the meme stock rally of 2021 through bullish videos and posts about GameStop. The YouTube account’s description reads, “The Roaring Kitty channel and live streams are for educational and entertainment purposes only. I don’t provide personal investment advice or stock recommendations during the stream.” The channel boasts over 730,000 subscribers.

    GameStop shares have experienced significant volatility over the past month with Gill’s reemergence on social media. Late Monday, following Gill’s online activity over the weekend, reports surfaced that executives at Morgan Stanley’s E-Trade platform were considering actions against an account tied to the screenshot. Subsequently, GameStop shares dipped by approximately 5%.

    Steve Sosnick, chief strategist at Interactive Brokers, commented on the situation earlier this week, stating, “Is whoever controlling this account doing this in your best interest or in their best interest? And, really, you should think that one through because, to me, it [is] pretty obvious whose interest it’s in. If you’re chasing the stock up here, you’re more likely than not the source of liquidity for whoever is controlling this account to sell into your enthusiasm.”

    In mid-May, GameStop saw a remarkable 180% rally over two days after “Roaring Kitty” posted on X (formerly known as Twitter) for the first time since 2021. However, last month’s rally was brief, with analysts cautioning that the current meme action did not match the level of retail inflows observed in 2021.

    Over three years ago, Gill, along with executives from Robinhood (HOOD), Citadel, Reddit (RDDT), and Melvin Capital, appeared before a congressional committee investigating the retail investor-driven short squeeze of GameStop’s stock price. In his testimony to the House Financial Services Committee, Gill explained his rationale for investing in the struggling video game retailer.

    Major Points:

    • GameStop shares skyrocketed after a YouTube account linked to Keith Gill, also known as “Roaring Kitty,” announced a livestream.
    • The stock surged 33% in pre-market trading on Friday and rose 47% in Thursday’s session.
    • Reddit user DeepF***ingValue, associated with Gill, posted a screenshot showing a portfolio worth $586 million, boosting investor enthusiasm.
    • Gill’s return to social media has caused significant volatility in GameStop shares, reminiscent of the 2021 meme stock rally.
    • Analysts caution that the current meme stock activity may not match the retail investor influx seen in 2021, urging investors to consider their positions carefully.

    Charles William III – Reprinted with permission of Whatfinger News

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