Jun 7, 2024,07:39am EDT
Topline: Shares in GameStop, AMC Entertainment, and other meme stocks were highly volatile during premarket trading on Friday after “Roaring Kitty,” the finance influencer known for initiating the original meme stock craze, announced his first livestream in years.
Key Facts:
- GameStop shares fell by 15% to $40 in premarket trading Friday morning after the retailer reported poor sales and a $3 billion stock offer, erasing earlier gains of more than 30% in premarket trading, following a 47% jump during regular trading on Thursday.
- The rally comes after Keith Gill, known as “Roaring Kitty” on YouTube and X, scheduled a livestream for 12 p.m. ET Friday on YouTube, his first video in more than three years.
- Gill’s upcoming stream has reignited trader interest in other meme stocks as well. AMC Entertainment Holdings, another favorite among traders influenced by Gill, closed up more than 12% on Thursday, though prices were highly volatile in premarket trading, fluctuating between gains of around 13% and losses of around 10%.
- Shares for BlackBerry, Bed Bath & Beyond, and Koss were also volatile, experiencing losses up to 7% and gains between 2% and 3% in premarket trading, after climbing more than 15% during regular trading on Thursday.
- Faraday Future, an electric vehicle maker, saw its shares surge between 16% and 25% in premarket trading after gaining more than 2% in regular trading hours the day before. Tupperware, another popular meme stock, climbed nearly 2% in premarket after gaining more than 6% on Thursday.
- Trading platform Robinhood, popular among retail investors and central to the meme stock craze, gained 6.5% in regular trading Thursday and 2.5% in premarket trading Friday, possibly influenced by news of its $200 million deal to buy crypto exchange Bitstamp.
Who is Roaring Kitty?
- “Roaring Kitty” is the online persona of Keith Gill on YouTube and X. On Reddit, home to influential trading forums like r/WallStreetBets, he goes by “DeepFuckingValue” (DFV). Gill is a prominent figure among retail investors and is credited with sparking the 2021 meme stock frenzy. Despite criticism for fueling investor mania, he defended his posts before Congress, stating they were for educational purposes. His recent return to social media and a post revealing a nearly $116 million position in GameStop have reignited interest in the stock. Forbes could not verify his position or the image purporting to prove it.
- Gill has not disclosed his plans for the livestream, but his previous broadcasts have included market analyses, positions he holds, and his investing philosophy. His last YouTube livestream in January 2021 attracted over 1.2 million viewers, and 15,000 people were already listed as “waiting” for Friday’s broadcast at the time of writing.
Key Background:
- Gill is a legendary figure among retail traders, with a cult-like following that helped fuel the original meme stock rally in 2021. His recent return has reignited interest in stocks popular during the initial craze, such as GameStop and AMC. While many of these stocks experience transitory spikes, GameStop has seen more enduring benefits from popular interest. Traditional investors and analysts often view the meme stock phenomenon as driven by hype rather than typical financial metrics, making investment in these stocks highly volatile and unpredictable.
- Gill’s upcoming broadcast has also sparked a rally in a GameStop-inspired cryptocurrency, GME. The Solana-based memecoin soared more than 142% over the last 24 hours, reaching a market capitalization of $197 million, part of a week-long rally that has seen its value increase sevenfold.