Shares in troubled US video game retailer GameStop Corp. rose on Monday as investor Keith Gill, known as “Roaring Kitty” on some social media platforms, allegedly returned to Reddit to post what appeared to be his substantial holding in the company.
The meme stock favorite closed 21.00% higher at $28.00, following an over 70% gain at the open. It climbed 8.43% to $30.36 in after-hours.
Data from a UK stock exchange and financial data provider showed that the Texas-based gaming firm was the most traded stock in New York after around $4.70 billion in its shares was traded since Monday’s close.
Other shares involved in the meme stock trend edged higher on Monday, with US movie theater chain AMC Entertainment Holdings Inc. adding 11.09% to $4.81 at the close, while Reddit Inc. ended the session 3.23% higher at $55.99.
Keith Gill Allegedly Returns to Post Large GameStop Holding
GameStop’s surge was mainly due to the Roaring Kitty account sharing a screenshot on Sunday showing Gill’s alleged stake of 5 million shares in the company, which carried a $21.27 per piece and $115.7 million value as of the closing price on Friday.
The post also presented the Reddit trading community’s top investor purportedly holding $65.7 million or 120,000 call options in the firm due to expire on June 21, but the information has yet to be confirmed.
A follow-up post showed that the meme stock influencer’s shares and options holding are currently worth $140 million and $120 million, respectively.
The screenshot has yet to be verified, and Gill has not responded to a request for a comment on the matter.
Furthermore, some investors doubt whether Gill created the posts himself.
Chief strategist Steve Sosnick said Gill was at the forefront when he first posted about the gaming store operator. They are now considering the possibility that Gill’s account is being managed by someone else or another entity.
Gill, the Reddit trading community’s top investor, gained popularity in 2021 when he headed a group of online investors on betting on the video game retailer.
The support led to an unexpected increase in the embattled company’s shares, putting Wall Street institutions that bet against GameStop in a financial squeeze.
Sunday’s post on the Roaring Kitty account was the first in over three years, marking a similar activity on Gill’s X account in May.
