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GameStop stock rockets 80% as Keith Gill's new post suggests a $116 million bet

Published 06/03/2024, 04:57 AM
Updated 06/03/2024, 04:59 AM
© Reuters GameStop stock rockets 80% as Keith Gill\'s new post suggests a $116 million bet
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Shares in GameStop (NYSE:GME) rocketed more than 80% in premarket trading Monday after Keith Gill, known as DeepF— Value on Reddit, posted a screenshot suggesting a $116 million investment in the company.

The June 2 screenshot showed five million GME shares bought at $21.27 each. This was Gill's first post in three years, which also included 120,000 call options worth $65.7 million set to expire on June 21. These options would enable him to buy the stock at $20 per share.

According to Bloomberg News, the screenshot couldn’t be verified.

GameStop stock surged up to 103% in premarket trading on Monday before capping some gains. If these premarket gains hold, the stock could add roughly $6 billion to its market value.

On social media platform X, Gill, under the username “Roaring Kitty,” posted an image of a UNO reverse card, which symbolizes changing the direction of play in the game. The post garnered over 5.3 million views within about eight hours of its publication around 8 p.m. Sunday, New York time, Bloomberg said in a report.

“Recent renewed interest in meme stocks, coming as the main US indices struggle to make new highs, is a sign of excessive over exuberance and is more likely a negative portent given the rising headwinds in the markets,” analysts from Bloomberg Intelligence said.

Gill had been quiet on social media since his 2021 rallying of day traders on Reddit to buy GameStop stock, challenging short sellers and predicting the company's reinvention as a leading gaming hub.

In mid-May, he re-emerged on X with an image of a video gamer leaning in, sparking speculation about his active return to the market.

Since his mid-May post, GameStop shares had dropped over 50% after a brief rally. The stock had famously soared over 2,000% in early 2021, thrusting the meme-stock phenomenon into the spotlight.

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