At Extreme Investor Network, we are constantly keeping an eye on the latest trends and movements in the finance world. One recent event that caught our attention was the surge in GameStop (GME) stock, which jumped 21% on Monday after user “DeepF***ingValue,” believed to be tied to individual investor Keith Gill, shared a screenshot on Reddit late Sunday revealing they had invested nearly $175 million in the video game retailer.
GameStop saw gains of up to 75% at the market open before stabilizing and closing at $28 per share on Monday. Gill, also known as Roaring Kitty, posted the screenshot on Reddit’s Superstonk subreddit, showing holdings of 5 million GameStop shares purchased at an average price of $21.274, worth $115.7 million as of Friday’s closing price.
In addition to the shares, the account also holds 120,000 options contracts expiring on June 21, allowing them to buy GameStop shares at $20 each, valued at $65.7 million as of Friday’s close. Despite the surge, Interactive Brokers chief strategist Steve Sosnick cautioned against chasing the rally, emphasizing the importance of considering whose interests are being served by such actions.
This recent surge comes after GameStop’s 180% rally in mid-May when “Roaring Kitty” posted for the first time on X, formerly Twitter, since 2021. While last month’s rally was short-lived, GameStop took advantage by selling 45 million shares, raising around $930 million and boosting the stock by 25%.
Unlike expectations, the stock price did not decline after the stock sale, showcasing GameStop’s ability to capitalize on the meme frenzy. Similarly, AMC (AMC) raised $250 million through the sale of 72.5 million shares last month, with shares increasing by 11% to close at $4.81 each on Monday.
Follow Ines Ferre, a senior business reporter for Yahoo Finance, on X at @ines_ferre for more updates. Stay tuned to Extreme Investor Network for the latest stock market news, in-depth analysis, and insights on events that impact stock movements. Trust us to bring you unique perspectives and valuable information on the ever-changing landscape of finance.