The unexpected social media resurgence of a trader known as Roaring Kitty caused GameStop shares to soar on Monday. The surge was fueled by a meme shared by Keith Gill, the trader behind the GameStop frenzy in 2021. Short sellers faced significant losses, with GameStop tripping circuit breakers multiple times due to elevated volatility. Other meme stocks like AMC Entertainment also experienced significant gains. Gill, also known as “Deepf—ingvalue” on Reddit, played a key role in the WallStreetBets subreddit’s success in driving up GameStop’s stock. These retail investors, collectively known as meme stock traders, have reshaped the market dynamics by trading based on social media trends rather than traditional fundamentals. Gill, who described himself as a casual trader, testified that he saw GameStop as an attractive investment opportunity. Despite his initial low expectations, the stock’s meteoric rise surprised even him. Gill’s story was portrayed in the 2023 movie “Dumb Money.”
Vocabulary List:
- Resurgence (noun): A revival or increase after a period of little activity or popularity.
- Soar (verb): To increase rapidly or rise high.
- Fueled (verb): To provide energy or support to somethingmaking it stronger or more successful.
- Circuit breakers (noun): Mechanisms in stock trading that temporarily halt trading on an exchange to prevent excessive volatility.
- Retail investors (noun): Individual investorsrather than institutional investorswho buy and sell securities for personal accounts.
- Meteoric (adjective): Relating to the extremely rapid rise or growth of something.
