Saturday, June 22, 2024

GameStop Soars, Lifting Retail Investor’s Portfolio to $1 Billion

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GameStop Soars Again, Propelling Retail Investor “Roaring Kitty” Near Billionaire Status, But Scrutiny Follows
Keith Gill, the retail investor known for his role in the 2021 GameStop short squeeze, is back in the spotlight. After revealing a new $180 million investment in GameStop (GME) stock on June 2nd, Gill, also known online as “Roaring Kitty” and “DeepFuckingValue,” has seen the value of his holdings surge alongside a significant rise in the company’s share price.

Gill’s announcement, which included details of a $115.7 million position in GameStop shares and $65.7 million in call options, sent shockwaves through the market. Robinhood, a popular online brokerage, saw GameStop’s price jump 19% on their overnight market just 20 minutes after Gill’s post. By the close of trading, GameStop shares had gained a staggering 38.8% for 2024 so far.

This upward trend continued, with GameStop’s price reaching $46.55 at the time of writing. This represents an impressive 118% increase since Gill revealed his renewed interest in the company. Analysts at The Kobeissi Letter believe Gill is poised to become a billionaire, with GameStop’s after-hours trading pushing the share price to $67.50. If this price holds for the opening bell, Gill’s position could be valued at around $1 billion.

However, Gill’s renewed involvement with GameStop hasn’t gone unnoticed by critics. Short-seller Citron Research took to social media platform X to accuse Gill of market manipulation on June 3rd. Citron alleged that Gill was not acting alone and was potentially working with others to inflate the stock price. Their post stated, “We believe someone is backing Gill — there’s no way he made this size trade alone. His reported finances don’t support this trade. Investors will see through this roaring Icarus.”

These accusations were followed by reports on June 4th that the Massachusetts securities regulator had opened an investigation into Gill’s activities. Former Chicago Securities and Exchange Commission official Lisa Braganca commented on the situation in a CNBC interview, stating that the investigation would likely focus on whether Gill’s actions were “moving the market.”

Braganca explained that regulators would be looking for evidence of potential collaboration with others or illegal activity. This could involve examining Gill’s communications, including text messages, emails, and even social media posts on platforms like Reddit and X. “They are concerned that this is an effort to manipulate the market and for him to make money for himself through illegal disclosures,” Braganca added.

As GameStop’s stock price continues to climb, so too does the scrutiny surrounding Gill’s actions. Whether he achieves billionaire status or faces regulatory repercussions remains to be seen, but one thing is certain: the “GameStop saga” is far from over.

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Author: Sb

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Disclaimer: The information provided in this article is for informational purposes only and should not be construed as financial or investment advice. Cryptocurrency investments are subject to market risks, and individuals should seek professional advice before making any investment decisions.

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