GameStop Shares Surge After Gill Post Shows $116 Million Bet

(Bloomberg) – GameStop Corp. shares have more than doubled after the Reddit account that fueled 2021’s meme stock mania posted what appeared to be a $116 million position in the gaming retailer.

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The June 2 screenshot from Keith Gill, who goes by DeepF—Value on Reddit, shows five million shares purchased at $21.27 per share. It was the account’s first post in three years. The screenshot, which also included 120,000 call options worth $65.7 million that would expire on June 21, could not be verified. The options would allow him to buy the stock at $20 per share.

Shares of GameStop rose 103% in premarket trading Monday, before paring their advance. If premarket gains continue, the stock is expected to add about $8 billion to its market cap.

On social media platform The post attracted more than 5.3 million views in about eight hours since it was posted around 8 p.m. Sunday New York time.

“The recent surge in interest in meme stocks, coming as major U.S. indexes struggle to reach new highs, is a sign of excessive exuberance and is more likely a negative omen given growing market headwinds “, Robert Lea, Bloomberg Intelligence analyst. , said.

Gill had remained largely silent on social media since rallying day traders on Reddit in 2021 to buy the stock to fend off short sellers, arguing then that the company was on the verge of “reinventing” itself as as a leading gaming center.

In mid-May, he returned to X with an image of a video gamer leaning toward him, fueling anticipation of an active return to the market.

GameStop shares have fallen more than 50% since a two-day rally sparked by its release in mid-May. The stock soared more than 2,000% in early 2021, bringing the meme stock frenzy into the mainstream consciousness.

In his previous last post on Reddit on April 16, 2021, Gill posted a screenshot showing that he owned 200,000 shares of GameStop stock, worth approximately $30.9 million at the time.

Gill posted his latest Reddit post on the r/Superstonk subforum on Reddit, which is “a place for theoretical discussions about GameStop stock.”

–With help from Farah Elbahrawy.

(Updates with pre-market trading)

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