The surge came on the heels of a social media post by “Roaring Kitty,” also known as Keith Gill. His first online appearance since 2021 has reignited memories of the meme stock frenzy that captivated markets in 2021.
A former marketer for Massachusetts Mutual Life Insurance, Gill became a central figure in the WallStreetBets subreddit and YouTube community during the meme stock craze that happened in 2021.
His relentless optimism about GameStop’s prospects attracted a legion of retail traders, ultimately leading to a historic short squeeze and significant losses for hedge funds betting against the stock.
At its peak, the movement took GameStop’s share price to a pre-market value of over US$500 — a staggering thirtyfold increase from its initial valuation of US$17.25 at the beginning of January 2021.
Short interest in GameStop remains substantial, accounting for approximately 24 percent of the freely available shares.
However, the resurgence of meme stocks has reignited concerns among market participants, particularly regarding the sustainability of these inflated valuations. While retail traders are celebrating the latest rally, critics warn of the potential consequences of speculative trading and market manipulation.
Securities Disclosure: I, Giann Liguid, hold no direct investment interest in any company mentioned in this article.
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