[06/04/24] GameStop Soars on Reddit Post

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Meme stock GameStop’s price skyrocketed 74% at one point in U.S. trading Monday a day after a Reddit account to which the mega-meme influencer Keith Gill—better know by his X /Twitter handle Roaring Kitty—is linked posted a screenshot showing a $115.7 million stake in the video game retailer.

“DeepF—ingValue,” which had been inactive for years, also showed a holding of 120,000 GameStop call options at a $20 strike price with a June 21 expiration. Those options were purchased at about $5.70 a piece.

“GME YOLO update,” said the posting, which was shared more than 94,000 times. YOLO stands for “you only live once.”

Gill, whose postings in 2021 sent GameStop’s then beleaguered shares soaring, and who reappeared on X last month after a lengthy absence, also posted an image of a reverse Uno card from the popular game on X, and four-minute video  on YouTube “to summarize the $GME bull case.”

Other meme stocks rose with AMC jumping 14%.

GameStop’s spike underlines the bizarro nature of markets where investments that should have questionable value—companies that seem out of touch with technological trends and tokens created for little more than entertainment—draw billions in assets.

By James Rubin

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