Roaring Kitty is Posting Again! What's Next for Meme Stocks?

The financial world is buzzing again as Keith Gill, aka Roaring Kitty, has resumed posting about GameStop (GME). On June 3, GME's stock price is expected to surge following the US stock market opening on Monday, driven by Roaring Kitty's weekend post. This has rekindled interest and speculation among investors. Gill's previous involvement was crucial in the January 2021 short squeeze, which skyrocketed the stock's price and spotlighted retail investors. With his return, many are wondering: what's next for GME?

What Happened to Roaring Kitty?

Last month, Keith Gill, the leader of retail investors in the US known as Roaring Kitty, returned to social media, sparking a new wave of interest in hot stocks. However, after reappearing, Gill did not provide clear investment guidelines, instead posting cryptic images and emojis on social media platform X. The surge in stocks like GameStop and AMC, driven by retail investors, quieted down after just two days of rapid gains.

But on Sunday, June 2nd, Roaring Kitty seemed to finally deliver substantial news. Reportedly, he posted a screenshot on his Reddit account "DeepF-Value" showing that he had purchased 5 million shares of GameStop at $21.27 per share, totaling $115.7 million. GameStop's stock price closed at $23.14 per share last Friday.

In addition, Roaring Kitty purchased 120,000 call options with a strike price of $20, set to expire on June 21st, valued at approximately $65.7 million.

This is the first post from his account on Reddit in three years. As of now, the authenticity of the mentioned order cannot be verified.

Further Impacts on Meme Stocks

As of the publication, WSB-concept stocks have risen sharply in the after-hours trading session, with Gamestop (GME) up more than 19%, AMC Entertainment (AMC) up more than 18%, and Koss Corp. (KOSS) up more than 16%. Gamestop rose more than 19% in night trading sessions. AMC rose more than 18%. KossCorp rose more than 16%.

Gamestop's stock is listed on the Tradegate exchange in Germany and initially surged to 37.9 euros at the opening. This is an increase of more than 70% compared to Friday's closing price. As of the publication, the stock was trading at 34.395 euros, up 61.52%.

It is not difficult to foresee that, unless there is a dramatic turnaround in the next few hours before the U.S. stock market opens, such as the confirmation that the "Roaring Little Cat" account has been hacked, the stock price of GameStop, led by this American retail investor, is likely to open significantly higher during the day.

Should I Invest in Meme Stock Now?

Experts generally view investing in meme stocks as speculative rather than true investing. It is akin to gambling, where timing the market correctly is both crucial and challenging. For those interested in building long-term wealth, meme stocks are typically not advisable. The focus should instead be on investments that offer sustainable growth based on company performance and market fundamentals. Try Intellectia.AI to do further research.