Please ensure Javascript is enabled for purposes of website accessibility

Reddit's 'Roaring Kitty' Doubled His Stake in GameStop

By Rich Duprey - Updated Feb 22, 2021 at 3:01PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Is the rally in the video game retailer's stock about to begin anew?

The Reddit stock trader who launched an insurrection against hedge funds trying to short GameStop (GME -3.56%) into oblivion is serious when he says he's bullish on the video game retailer.

The Wall Street Journal reported last week that Keith Gill -- known as Roaring Kitty on his YouTube channel -- doubled his stake in GameStop to 100,000 shares for a position that was worth $4 million.

Casino chips sitting on computer keyboard

Image source: Getty Images.

The mouse that roared

Gill got the short-squeeze ball rolling last month after posting his bullish take on the video game retailer and noting hedge funds had overplayed their hand and shorted more stock than there was available to trade.

It quickly became clear that small retail investors acting in concert to buy GameStop shares and options could cause the stock price to rise. In doing so, short-sellers would start covering their positions, leading to further increases in the share price.

What Gill perhaps didn't realize was that a torrent of pent-up emotion would be unleashed in the process, and not only would GameStop be caught in a "gamma squeeze," but that other heavily shorted stocks would get sucked into the vortex. 

AMC Entertainment (AMC -8.03%), Bed Bath & Beyond (BBBY -9.94%), and Nokia (NOK 0.62%) were among the companies that saw their stock prices soar hundreds if not thousands of a percent higher in the course of just a few days.

Gill was called to testify before Congress on his actions that precipitated the stock trading frenzy, along with the heads of hedge funds and the Robinhood online trading app. Gill testified essentially that he liked GameStop's stock, and he has apparently backed up that sentiment with money, purchasing an additional 50,000 shares.

GameStop stock was up over 7% in midday trading Monday, which would have added approximately another $290,000 in value to Gill's position.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

GameStop Corp. Stock Quote
GameStop Corp.
$95.66 (-3.56%) $-3.53
Nokia Corporation Stock Quote
Nokia Corporation
$4.83 (0.62%) $0.03
Bed Bath & Beyond Inc. Stock Quote
Bed Bath & Beyond Inc.
$8.70 (-9.94%) $0.96
AMC Entertainment Holdings, Inc. Stock Quote
AMC Entertainment Holdings, Inc.
$12.03 (-8.03%) $-1.05

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning service.

Stock Advisor Returns
S&P 500 Returns

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 05/23/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.