GameStop shares surge 21% after Roaring Kitty's $116 million bet on Reddit post

From Investing.com: 2024-06-03 18:30:55

GameStop shares surged 21% on Monday after Roaring Kitty made a $116 million bet public, closing at $28 after spiking 75%. The influencer, Keith Gill, shared a screenshot on Reddit of his 5 million shares, which he continues to hold along with 120,000 call options worth $260 million. Short sellers face $1 billion in losses.

Gill’s last Reddit post in 2021 showed a holding of 200,000 shares worth $30.9 million. The recent surge puts GameStop short sellers on track for $1 billion in paper losses. Other meme stocks like AMC and Reddit also rallied. GameStop recently raised $933 million to cash in on the meme stock rally but has faced slowing sales.

Major U.S. stock indexes hit all-time highs as GameStop shares surged again. Retail investors may not find success in the next few days, according to some analysts. The surge in meme stocks raises concerns about froth in the market.289



Read more at Investing.com: GameStop gains as Roaring Kitty reveals bet in Reddit post By Reuters