US stock markets: Gamestop shares climb over 90% after Roaring Kitty’s Reddit post shows $116 mn bet
GameStop was the second-most actively traded stock, with 4.4 million shares changing hands by 4:30 a.m. ET
Gamestop Corp.shares climbed more than 90 per cent in premarket trading on Monday, after a Reddit post from stocks influencer Keith Gill showed a $116 million bet on the gaming retailer.
A screenshot by Keith Gill showed five million shares bought at $21.27 apiece.
GameStop was the second-most actively traded stock, with 4.4 million shares changing hands by 4:30 a.m. ET.
It was the first post from Keith Gill, known as “Roaring Kitty”, on his Reddit account since his return to X in mid-May.
Gill had fuelled anticipation that he will actively return to the market after he had shared an image of a video gamer leaning in.
GameStop shares have fallen more than 50 per cent since a two-day rally triggered by his mid-May post.
A screenshot posted on Sunday showed $20 call options for GameStop expiring on June 21.
In a post on X on Sunday, Gill also shared an image of an UNO reverse card, which is used by players in the game to change the card-pickup direction.
The post had attracted about 5.5 million views in the nine hours since its publication at about 8 p.m. Sunday New York time.
GameStop’s 2021 rally
About three years ago also, Reddit posts by Gill had fuelled a rally in the meme stock.
In early 2021, the stock had soared more than 2,000 per cent.
In his last previous post on Reddit in 2021, Gill had posted a screenshot that showed he held 200,000 GameStop shares, or about $30.9 million worth at the time.
On Friday, the GameStop stock had closed at $23, up about 33 per cent since Gill began sharing cryptic posts and memes on X.com in May.
Reddit shares jumped 7.5 per cent, while retail trader-focused brokerage Robinhood gained 3.5 per cent.
Among other meme stocks, AMC Entertainment Holdings Inc. added 30 per cent, Tupperware gained 12 per cent, US-listed shares of BlackBerry rose 7.8 per cent.
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