GameStop Volatility Returns with Roaring Kitty Reddit Post

GameStop’s meme stock surged again on Monday after a Reddit post from the meme-craze architect “Roaring Kitty”. 

GME – Daily Chart

GME – Daily Chart 

The price of GME surged at the open above $40 and slumped back to $28. The original gap open at that level supports the price. Traders can keep an eye on that level for the week ahead. 

The struggling retailer surged 80% at the market open but fell back initially to a gain of 22%. 

The move was driven by a Reddit post from Keith Gill, aka Roaring Kitty, who posted a bet on GME to $116 million. He also showed a large holding of options trades expiring in late June. 

GameStop soared two weeks ago when Gill returned to the X social media platform for the first time in three years. The Reddit post was also the first in three years following his original analysis on YouTube and Reddit in 2021, which sparked a meme stock frenzy amongst retail investors. 

Monday’s surge was also damaging for GME short sellers, who were on track to rack up almost $1 billion in paper losses, according to data from Ortex Technologies. 

The $7 billion company needs help slowing sales in its core business of selling new and pre-owned video games. Video game sales have slowed over the last year, and consumers have also been downloading games digitally or streaming them more often. 

GameStop is expected to release its first-quarter earnings results on June 11. Last month, the company said that first-quarter net sales would drop to $872 million and $892 million from $1.24 billion a year ago. 

There could be more volatility ahead, and it is a stock to keep on watchlists as it could trigger another type of meme stock mania in a broader range of stocks. 

News agencies could not verify Gill’s post, which may be the cause of the selling that emerged after today’s opening.

Recent News
Start Trading Now !

Try our demo account for free to learn trading. When you’re ready, switch to a live account and start trading for real.

Popular posts
ATFX

Account Registration Unavailable

Please note that you may be accessing this page from outside South Africa. For retail and professional inquiries regarding AT Global Markets SA (Pty) Ltd, kindly reach out to us at [email protected]

ATFX

Restrictions on Use

Products and Services on this website are not suitable for the UK residents. Such information and materials should not be regarded as or constitute a distribution, an offer, or a solicitation to buy or sell any investments. Please visit https://www.atfx.com/en/ to proceed.

ATFX

使用限制

本网站的产品及服务不适合英国居民。网站内部的信息和素材不应被视为分销,要约,买入或卖出任何投资产品。请继续访问 https://www.atfx.com/en-za/

ATFX

Restrictions on Use

Products and Services on this website are not suitable for the UK residents. Such information and materials should not be regarded as or constitute a distribution, an offer, or a solicitation to buy or sell any investments. Please visit https://atfxgm.eu/en/ to proceed.

ATFX

Restrictions on Use

Products and Services on this website are not suitable for the UK residents. Such information and materials should not be regarded as or constitute a distribution, an offer, or a solicitation to buy or sell any investments. Please visit https://www.atfx.com/ar/ to proceed.
ATFX

Restrictions on Use

Products and Services on this website are not suitable for the UK residents. Such information and materials should not be regarded as or constitute a distribution, an offer, or a solicitation to buy or sell any investments. Please visit https://www.atfx.com/en-au/ to proceed.

ATFX

Restrictions on Use

Products and Services on this website are not suitable for the UK residents. Such information and materials should not be regarded as or constitute a distribution, an offer, or a solicitation to buy or sell any investments. Please visit https://www.atfx.com/en-za/ to proceed.
ATFX

Restrictions on Use

Products and Services on this website are not suitable for Hong Kong residents. Such information and materials should not be regarded as or constitute a distribution, an offer, solicitation to buy or sell any investments.

使用限制: 本網站的產品及服務不適合香港居民使用。網站內部的信息和素材不應被視為分銷,要約,買入或賣出任何投資產品。

ATFX

Restrictions on Use

Products and Services on this website are not suitable for the UK residents. Such information and materials should not be regarded as or constitute a distribution, an offer, or a solicitation to buy or sell any investments. Please visit www.atfxconnect.com to proceed.