The main icon behind the GameStop saga is back on social media after almost three years in the dark. GameStop stock’s initial 100% up reaction says it all.
- Keith Gill, also known as “Roaring Kitty,” has resurfaced on social media after nearly three years, sparking a significant surge in GameStop stock.
- Gill’s return marks a resurgence of interest and optimism among GameStop retail investors, who have remained loyal to the stock despite its fluctuations.
- His single tweet caused GameStop’s market value to soar by approximately $7 billion, underscoring his influence as a central figure in the GameStop saga and the power of retail investor sentiment.
- Catch the latest investment trends! Join our FREE Wall Street Trends Substack community for insights, and stay tuned for the newest investment insights.
He’s back!
After an absence of precisely two years and eleven months, one of the central figures in the GameStop stock saga has re-emerged. Keith Gill, known as “Roaring Kitty” and “DeepF**ingValue,” returned to social media after withdrawing from public life without any clear whereabouts.
Gill made his comeback through his X/Twitter account, where he posted an image of a video game player transitioning from a relaxed position to leaning forward, indicating heightened attention to the screen.
— Roaring Kitty (@TheRoaringKitty) May 13, 2024
The seemingly innocuous image holds a significant backstory—it marks the return of one of the primary catalysts behind GameStop’s short squeeze in January 2021.
Following the tumultuous events involving Keith Gill and GameStop stock, where he played a pivotal role in disseminating the company’s investment thesis to thousands of retail investors, triggering one of the most monumental short squeezes in history, Gill largely vanished from the public eye. This disappearance was particularly notable after his testimony before a US court, where he had to defend his actions in the episode.
Gill testified before the House Financial Services Committee on February 18, 2021, stating, “I did not solicit anyone to buy or sell the stock for my own profit,” and famously declaring, “I like the stock.”
Later that same year, the Securities and Exchange Commission (SEC) released a 45-page report acknowledging that “People may disagree about the prospects of GameStop and the other meme stocks” but not indicating any evidence of market manipulation.
His narrative gained such traction that it made its way to Hollywood and became part of the movie Dumb Money, produced by Sony Pictures.
The First “GameStop Stock Ape”
The community groups of GameStop’s retail investors coalesced around the investment thesis propagated by Keith Gill’s YouTube channel, where those dedicated to supporting the stock and battling short sellers referred to themselves as “apes.” Gill, in essence, could be considered the pioneer of this movement.
Gill entered his position as the video game retailer through call options in June 2019, subsequently expanding his holdings in GME over the following year.
At that time, Gill’s investment thesis rested on believing that the market was underestimating GameStop’s growth potential while overestimating the likelihood of the company’s bankruptcy. By 2019, GameStop’s sales had begun to show signs of weakening demand, positioning the company as a target for short-selling in the eyes of many traders.
On his YouTube channel, Gill pointed out that GameStop could enhance its digital capabilities and leverage its 60 million loyal members. Through his recurring stock coverage, Gill inspired hundreds of thousands of other retail investors to purchase GameStop shares.
Gill also attributed his optimism to Michael “Big Short” Burry’s bullish stance on the company. Burry acquired a stake in the company in 2019 based on the company’s discounted valuation.
His last posts on WallStreetBets using his ‘DeepF**ingValue’ handle and his Roaring Kitty YouTube stream date back to April 16, 2021. The final tweet from his @TheRoaringKitty handle, featuring a video of a kitten, was posted on June 18, 2021. Public records searches indicate that Gill has not pursued any new business ventures or responded to requests for comment.
Recent records indicate that, as of April 2021, he held a position of 200,000 shares of GME pre-split, following the exercise of 500 call options and the purchase of an additional 50,000 shares.
It’s known that at its peak on January 27, 2021, Gill’s GameStop position was valued at approximately $47.9 million.
The Most Valuable X/Twitter Post in History?
Before the trading session on May 10th, GameStop held a market value of around $5 billion. However, by the commencement of trading on May 13th, following the news of Keith Gill’s post, the company’s value had surged to over $11.24 billion.
Keith’s tweet swiftly propelled GameStop shares back to levels not seen since mid-2022, effectively erasing all the losses of the past two years. And all this, thanks to just one tweet.
Of course, the significance of that tweet cannot be overstated.
It signifies the return of the greatest of the apes, the paramount icon of the GameStop saga. It symbolizes the awakening of a dormant giant—a collective of retail investors and GameStop enthusiasts who have steadfastly held onto the stock simply because they “like the stock.”
The impact of this event is difficult to quantify and practically immeasurable. But deep down, GameStop retail investors always believed that Keith Gill would resurface one day. The initial reaction to Roaring Kitty’s return perfectly illustrates this—a surge of hope that GameStop stock will once again become the subject of intense hype.
Just one tweet, and voila, the company’s value surges by about $7 billion. No sales or cost-cutting strategy promoted by CEO Ryan Cohen could achieve such a feat. Only Keith Gill, the original GameStop ape, could.
(Disclaimers: this is not investment advice. The author may be long one or more stocks mentioned in this report. Also, the article may contain affiliate links. These partnerships do not influence editorial content)
Leave a Reply