Is the meme revolution back? GameStop surges 110% after Reddit’s great guru returns

GameStop soars as much as 110% in early Wall Street trading after rising more than 73% over the past 30 days. With today’s gains, the company has advanced more than 246% in the past month. All this despite the fact that the company announced job cuts and lower profits in the face of growing competition. The reason is that hope that seemed buried has returned to the surface: the awakening of a new meme revolution.

The video game company became the epicenter of a record stock market rally as a result of investments from members of WallStreetbets, a Reddit channel that shocked all US stocks. In fact, the GameStop earthquake and its subsequent tremors at other companies like AMC or BlackBerry triggered bankruptcies of some of the country’s biggest bears.

This episode seemed to be a thing of the past until, without any apparent argument, GameStop skyrocketed again. The latest push comes from one of the forum’s biggest contributors, Roaring Kitty, who posted the tweet after three years of complete inactivity and facing possible criminal consequences for his actions in the market. I liked it earlier, waiting for it to come back. The investor behind the account Keith Gillwas one of the great leaders of the “meme revolution”, investing $53,000 in the company to turn it into $50 million in just a few weeks.

“Growling Kitty” also has a YouTube channel, separate from his Reddit and X accounts, where he offers his strategies. However, after the volatility, they took up all sorts of measures to curb retail rage. At first, GameStop purchases were limited to Robinhood, the main company for which the forum participants worked. Gill later had to testify before the US Congress. He said in a statement that “I did not seek anyone to buy or sell shares for my own benefit, and I did not have any relationships with any hedge funds.”

At the time, there was particular concern that strong movements in retail would completely shake up the market and companies. In fact, Melvin Capital suffered such losses due to GameStop’s rise that it was forced to receive financial support from an alliance of other investment institutions. almost 3 billion dollars to avoid bankruptcy.

Now the return to the public stage of one of the main organizers of this rally has raised fears of a “runoff” three years later, causing euphoria among other values ​​such as Blackberry (which increases by 5% pre-market) or AMC (which grew by 17%). All this by simply uploading a photo online of him using a meme to show how he acts.

The video game company, with the exception of forums and other movements, has shown no signs of improvement that would justify a raise. With revenue of $1.79 billion. they showed a 20% drop. Although earnings per share increased 25%, they fell short of expectations.