GameStop runs on Wall Street where it gains 75% before being suspended due to excessive volatility. The rally is linked, as already happened in 2021, to the posts of the famous influencer and retail investor Roaring Kitty. From his account he made it known via social media that he had shares worth over 115 million dollars in the video game company. Keith Gill, real name of Roaring Kitty, is also known as Deep F-Value on Reddit and on the famous forum he shared a screenshot showing the shares held in GameStop. The image showed 5 million GS shares in the portfolio worth $115.7 million (at Friday’s closing price).
The race of these hours is reminiscent of the 2021 rally when at the end of January a group of retail investors, including Roaring Kitty, are organizing on Reddit, on the Wallstreetbets channel with 3 million users, to buy GameStop shares. In a few days, the share price soared from 4 dollars in 2020 to 147 dollars on 26 January 2021, then exceeding 300, thanks to the intervention of Elon Musk who encouraged purchases with a tweet. At the time there was talk of small investors who they had defeated the “strong powers” of Wall Street. The short sellers, the bearish speculators, had in fact been forced to buy the shares to compensate for the risks they had taken by betting against Gamestop.
It is not possible to predict whether this is the beginning of a new “short squeeze” but since May Roaring Kitty has published various contents on (meme used by players when things get serious) and a few days later a photo with the “Change spin” card from the famous Uno game.
