GameStop (GME) stock soared as much as 110% on Monday before paring its gains, and it was halted several times due to volatility after “Roaring Kitty”, the person who is considered to have triggered the stock market frenzy of memes during the pandemic, job online for the first time since 2021.
The stock surpassed $30 per share on Monday to close up 75%. Shares have been on an upward trend, rising about 60% over the past two weeks.
“Roaring Kitty,” identified that year as Keith Gill, became a prominent figure on the WallStreetBets subreddit and YouTube for his bullish stance on GameStop (GME).
Sunday’s post on X, formerly known as Twitter, included a meme depicting a video gamer leaning forward, appearing to take the game seriously. The post received over 81,000 likes and 9,000 comments. The last time Roaring Kitty posted on X was in June 2021.
He was known for posting comments on why GameStop would rise and ultimately testified before Congress about the massive January 2021 squeeze brought on by an army of retail traders.
Short interest in GameStop sits at about 24% of the float, according to data from S3 Partners.
“Including today’s losses, GME’s short positions are now down -$1.34 billion from May’s losses, and now down -$952 million for the year” , Ihor Dusaniwsky, managing director of S3 Partners, told Yahoo Finance on Monday.
Monday’s short squeeze follows a recent rally in meme-related stocks. Theater chain operator AMC (AMC) gained as much as 50% during the session, while Trump Media & Technology (DJT) gained 8%.
“Short sellers could find themselves in a tough and bloody situation on these stocks,” Dusaniwsky said.
As Yahoo Finance’s Jared Blikre recently noted, the recent surge in meme stocks appears not to be the ominous signal it has been in the past, but rather a healthy risk appetite for investments.
Ines Ferre is a senior economics reporter for Yahoo Finance. Follow her on Twitter at @ines_ferre.
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