BB:CC - Why 'Roaring Kitty' Sent Meme Stocks Soaring Like It's 2021
2024-05-15 21:30:00 ET
The names surrounding stock market trends over the last few years have been ridiculous and hilarious to say the least. And the most recent one to enter headlines once again is X contributor Roaring Kitty.
After going MIA over the last three years, X user, whose real name is Keith Gill, started up another bull run in meme stock favourite GameStop ( NYSE:GME ) this week, sending shares soaring. But could it all come crashing down once again?
What happened
First, let’s get into why Gill matters in the first place. Gill was hugely responsible for the surge in GameStop stock back in 2021, when the investor started posting about the video game retailer on X.
Yet after the pandemic craze was over, the company left social media for a solid three years.
Now, he’s back.
Gill made his first social media post on May 13, 2024, of a man shifting from a laid-back position playing video games, to leaning forward and looking at full attention. The cryptic post sent users wild, and shares of GameStop stock soared once again.
Since the post, shares of GameStop stock have surged an insane 218%, and are rising, as of writing. And the growth didn’t end there.
Trickle-down effect
While GameStop stock started rallying, other former meme stocks also saw a boost. This included AMC ( NYSE:AMC ) shares hurtling forward as well, up about 240% since the post came out.
American companies weren’t the only ones seeing a rise. Canadian tech stock BlackBerry ( TSX:BB ) also enjoyed a huge increase in share price. Since the post came out, shares are up 26% on the TSX . Yet the question is, how long can it last?
‘Gamification’
Analysts are terming the recent rally as another “gamification” in the markets, where investors try to get involved and “play.” However, it does cause one to wonder exactly who will come out as the winners, given the immense losses that occurred last year.
That’s because this “gamification” is nothing short of gambling, as investors try to get the best results and the best price. Accordingly, many investors put cash into these markets aiming to see large gains in a short period of time. And if that’s not like gambling, I don’t know what is.
Especially since the markets went on to see incredible losses. GameStop stock went from a share price of US$86.88 down to just US$10.15, a drop of 88%. AMC stock was similar, with shares at US$551.38 and then dropping to US$327, down 41%. And that was only the beginning, with shares going on to plunge downwards. Even now, with shares back up, AMC stock is only at US$9.61 per share as of writing.
As for BlackBerry stock, shares almost fell as low as $18 before plunging downwards , and even with the recent increase are only at $4.86.
Stick to your guns
While it can be fun to “play” the market sometimes, it’s always a good idea to stick to your long-term goals. If you want to gamble with some of your investments, then that’s up to you. But as with gambling, only use the cash you’re willing to lose completely. Because in the case of meme stocks, that looks highly likely.
The post Why ‘Roaring Kitty’ Sent Meme Stocks Soaring Like It’s 2021 appeared first on The Motley Fool Canada .
Fool contributor Amy Legate-Wolfe has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy .
2024