GME stock: Early on Monday, shares of AMC and GameStop shot up when Keith Gill—the man responsible for the meme stock rise during the pandemic—returned to social media for the first time in three years. As shares of GME stock surged early on Monday, the New York Stock Exchange repeatedly halted trading on the stock.

For the first time since June 2021, Gill—better known online as Roaring Kitty—posted on social media site X on Sunday night. The meme image in the post suggested that he is “getting serious.”

In 2020 and 2021, Gill became notorious for being a major force behind the GameStop (GME) short squeeze. In February 2021, the House Financial Services Committee requested testimony from the former financial analyst and broker in relation to an investigation into possible market manipulation.

“He’s back,” “game on,” and “just in time for the memecoin supercycle,” among other remarks made by regular investors in reference to the growing values of smaller cryptocurrencies, were among the cheery remarks made by them.

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GME stock

 

The post caused GME shares to soar early on Monday, up almost 78%. Due to volatility, the NYSE repeatedly stopped trading on GME stock for a brief period of time throughout Monday’s opening hour of trading.

Up until Friday, when it closed at 17.46, GameStop’s stock price was largely unchanged for the year.

Early on Monday, theater company AMC Entertainment (AMC) saw a 19% increase. As of Friday, AMC’s shares had dropped by around 53% in 2024. The share price has not deviated much from its April record low of 2.38.

The Previous Short Squeeze

 

In 2021, the stock of GME increased by 688%. Using internet message boards, individual investors orchestrated a purchasing frenzy for the video-game retailer’s shares. The short sellers, who were wagering that the stock would decline, were taken aback by the buying frenzy. Unless they purchased the stock, which fueled greater gains, these “shorts” faced limitless losses.

It was a daring and contentious move to increase the price of GME stock.

Ironically, GME stock increased because it had dropped so much. And a sizable portion of investors anticipated a greater decline.

GME shares had dropped by a third in value over the preceding five years as of 2021. Shares of GME were held by short sellers in late 2019 who were wagering that the stock would decline. That excessively bearish wager created the ideal conditions for a huge short-squeeze surge.

The complete story of the short squeeze was told in the motion picture “Dumb Money.”

 

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