GameStop Stock Booms: Reddit Influencer Returns

5/14/2024, 8:00 AM

GameStop stock experiences a strong surge again due to the comeback of a powerful Reddit user – investors cheer!

Eulerpool News May 14, 2024, 8:00 AM

The GameStop stock experiences a renewed surge due to the return of an influential Reddit user. In the past three months, the stock price increased by 18.53 percent, and in the last month by even 73.56 percent. This development reminds many market participants of the spectacular rally of 2021.

The company came under pressure at the time due to growing online trade, prompting numerous hedge fund managers to take short positions. Small investors then organized in the Reddit sub-forum WallStreetBets and began buying GameStop shares in large quantities. This led to a dramatic rise in stock prices, forcing hedge funds to liquidate their positions.

Currently, a new agreement with SDS is attracting additional attention as GameStop wants to expand into the film market. However, the recent surge in stock prices was mainly triggered by the return of Keith Gill, known as Roaring Kitty. Gill posted his first entry on platform X after three years, showing a seated person with a video game controller. This news quickly spread in relevant forums and subreddits, fueling hopes for another stock peak.

My God, it's him, he's really back," wrote an enthusiastic user in the GameStop forum on Reddit.

Currently, the short percentage of outstanding GameStop shares is 21 percent, significantly below the peak of 140 percent in 2021. Whether the meme stock is on the verge of another spectacular rally remains to be seen.

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