0
Meme stocks are back as legendary trader returns, leaving shorters in disbelief

Meme stocks are back as legendary trader returns, leaving shorters in disbelief

remember meme stock?

In early 2021, video game retailer GameStop's stock price skyrocketed when a Reddit community of traders, led by trader Roaring Kitty (or DeepFuckingValue on Reddit), started buying in bulk. As a result The demise of hedge fund Malone Capital Which was shorting GameStop stock (shorting, in the simplest terms, betting on a decline in stock price). It also started a trend in which communities of small traders were able to significantly move certain stock prices, often defying the directional bets of larger institutions such as hedge funds. This was the beginning of the era of the meme stock.

While this trend was short-lived, largely petering out at the end of 2021, it now appears to be back. On Monday, after nearly three years of sleeplessness, Roaring Kitty's account on X Started posting a series of memes and crypto video quotes. While it's hard to understand what each of these means, the consensus is that Roaring Kitty is back in business, and stock traders have taken notice.

After staying in the $10 to $18 region for almost all of 2024 so far, GameStop price (whose stock ticker is $GME) rose to $80 in the past two days, before settling at the current (premarket) price of $51.31. Another meme stock price, AMC EntertainmentAfter Roaring Kitty's return, at one point more than doubled.

Mashable Light Speed

For those shorting $GME and $AMC, the news was not good. According to predictive analytics Ihor Dusaniwskyshorts are down more than $2 billion this week.

How can one man's tweets move stock prices so violently? Roaring Kitty, real name Keith Gill, gained notoriety by holding a long position in GameStop for several years (essentially betting on the price going up), which turned in a relatively small $53,000 position. Tens of millions of dollars And getting a cult following in the process.

However, the question on every trader's mind is whether the trend of pumping meme stocks is sustainable, or if it's a one-off event fueled by the return of Roaring Kitty (some have pointed out that Roaring Kitty is on other social channels). Has not been active as such Youtubeindicating that someone else is tweeting from his account).

Right now, there is no definitive answer. Roaring Kitty has a Twitter account. Still posting Puzzles, with some Reddit traders Investing in stock price movements. Robin Hood is rated on Apple's App Store. Went up fast In the past few days, which is another sign that retail investors are back (in early 2021, Robin Hood increased Above Apple's App Store (as many investors joined the meme stock trade). The trend may end or it may wreak havoc in investment circles once again. One thing is for sure: this time, there are professionals. Taking notice.

About the Author

Leave a Reply