GameStop, the popular gaming and console empire, has seen shares rise by 110%.
This surge in the gaming company’s stock since the frenzies heights it hit during the Covid-19 pandemic.
GameStop Stock soars
The surge in investment in GameStop (GME) can be traced back to Keith Gill, who was instrumental in the initial stock gains during the pandemic.
Gill went by the nom de guerre “Roaring Kitty” when the value of GameStop stock reached an all-time high. In January 2021, the GME reached a 21-fold height before spectacularly crashing down.
Game Stop has announced job layoffs during poor fourth-quarter earnings reports in the past year, so the surge has come at a good time for the turbulent gaming outlet.
The stock’s recent display capped an eighteen-month peak at $38.20. Gill took to social media to post a figure of a hunched-over gamer, deep in focus—a call sign in the gaming community that the person in question has a razor-sharp and serious aura.
— Roaring Kitty (@TheRoaringKitty) May 13, 2024
Chief market strategist at B Riley Wealth, Art Hogan, told Reuters that Gill “seems to be the most likely suspect for the renewed interest today… but I would be careful not to characterize the participants in this phenomenon as investors.”
According to seasoned market veterans, this surge will not be an identikit for the previous freak wave that captivated investors and spectators alike.
“It’s unlikely you’re going to see a repeat of meme stock mania for any sustained period of time because it was a point in time when you had a bunch of people stuck at home with free money, and that’s no longer the case,” Thomas Hayes, chairman at Great Hill Capital LLC said to Reuters.
It remains to be seen if the wave of support generated by Gill’s reappearance will cause a further flux in the fortunes of GameStop stock, but stranger things have happened in the much-maligned gaming franchise’s history.
Image: Ideogram.
