GameStop rises 71% on ‘Roaring Kitty’ return, surges 87% in five days
Wall Street today: US stocks rise as investors eye inflation data “That he is able to generate a crowd says that the crowd is back to feeling FOMO and YOLO in an enormous way. When people dive into things that are of pure speculative value, their confidence is extremely high and this is one of the ways that it manifests," Peter Atwater, president of Financial Insyghts and an adjunct professor at William & Mary and the University of Delaware, was quoted as saying by Bloomberg. GameStop surged in a three-week rally leading up to Monday's spike, marking its longest winning streak of the year, with shares climbing 68% during that period.
Renowned for its meteoric rise of over 2,000% in early 2021, GameStop became emblematic of the meme-stock craze, capturing widespread public attention. After adjusting for a stock split, the shares reached a peak of $86.88 towards the end of that month, only to plummet approximately 88% within three weeks. On Monday, the shares were trading around $26.
Roaring Kitty played a pivotal role in directing attention towards the stock's staggering short-interest ratio, which stood at around 140% of available shares being sold short. Investors placed their bets on Ryan Cohen, the entrepreneur turned retail trading icon. Cohen, acclaimed as the largest shareholder of the video-game retailer, has garnered a devoted following among individual investors.
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