GameStop ($GME) shares are on the verge of experiencing a surge reminiscent of the frenzy of 2021, coinciding with the return of one of the stock’s prominent advocates from that period on social media.
In premarket trading, the stock soared by up to 38%, setting it on course for its highest monthly gain since the 87% rally witnessed in March 2021. This uptick follows a mysterious post by Keith Gill, also known as “Roaring Kitty” on social media platforms.
Gill rose to prominence in 2021 for his online videos encouraging investors to join the GameStop movement during the meme-stock craze. His recent post on Sunday evening garnered over 8 million views within hours of its publication, marking his first activity on the platform since June 2021.
Despite the absence of a clear catalyst behind the recent surge, retail investors have once again been the driving force. According to Giacomo Pierantoni, head of data at Vanda Research, inflows over the past week totaled $12 million, indicating renewed retail interest.
Pierantoni noted that these spikes in retail activity have often served as contrarian signals, prompting institutional investors to quickly short the stock following these retail-driven rallies.
Option activity on GameStop has surged notably this month, with open interest on calls reaching the highest level of the year at 588,205 contracts. On Friday alone, 293,402 calls were traded, nearly three times the 20-day average.
Meanwhile, AMC Entertainment Holdings Inc., another favorite among retail traders, also experienced a significant premarket surge of up to 8.9%. Despite being down over 99% from its 2021 peak, AMC’s upward movement indicates continued interest from retail investors. Conversely, GameStop shares have depreciated by approximately 80% since their peak in 2021.