GameStop Leaps In Premarket As Roaring Kitty May Hold Large Position

Shares of GameStop are jumping ahead of Monday’s market start, fueled by suspicion that the man at the core of the pandemic meme stock frenzy owns a big number of shares in the video game store, potentially worth millions.

GameStock’s stock rose more than 87% in premarket trading.

Keith Gill, also known as “Roaring Kitty” on social media platforms YouTube and X, goes by the handle Deep F- – – – – Value on Reddit. Late Sunday, a Reddit user posted a screenshot in the r/SuperStonk thread, which some believe is an image of Gill’s GameStop shares and call options. The graphic suggested that Gill may own 5 million GameStop shares worth $115.7 million as of Friday’s closing price. The picture also revealed 120,000 call options at GameStop with a strike price of $20 that expire on June 21. The call options were purchased at approximately $5.68 per piece.

Gamestop | CNBC Image

GameStop Leaps In Premarket As Roaring Kitty May Hold Large Position

Gill’s account on X also tweeted an image of a reverse card from the popular game Uno on Sunday night. There was no associated text for the image.

This latest behavior comes just three weeks after Gill emerged online for the first time in three years, causing GameStop’s stock price to rise. In May, the “Roaring Kitty” account shared an image on X of a man sitting forward in his chair, a meme commonly utilized by gamers when things become serious.

The post on X was followed by a YouTube video from years ago in which Gill defended the troubled corporation GameStop, saying, “That’s it for now because I’m out of breath. FYI, here’s a fast 4-minute video I made to summarize the $GME bull argument.

Gamestop | CFA Image

GameStop Leaps In Premarket As Roaring Kitty May Hold Large Position

In 2021, GameStop was a video game retailer battling to survive as consumers shifted fast from discs to digital downloads. Big Wall Street hedge funds and major investors were betting against it or shorting its stock with the expectation that its shares would continue to fall precipitously.

Gill and many who agreed with him reversed the course of a firm that appeared to be on the verge of collapse by purchasing thousands of GameStop shares despite practically all acknowledged indicators indicating that the company was in serious trouble.

That triggered what is known as a “short squeeze,” in which large investors who had bet on GameStop were obliged to buy its swiftly increasing stock to offset significant losses.

Gamestop | EW Image

GameStop Leaps In Premarket As Roaring Kitty May Hold Large Position

Others that joined the viral rush on Monday include movie theater company AMC Entertainment Holdings, which is up more than 26% in premarket trading. Koss Corp., a headphone producer, increased by more than 14%, while BlackBerry, the once-dominant smartphone maker, increased by more than 4%.

SOURCE – (AP)