- The popular Roaring Kitty account posted on X Sunday night for the first time in nearly three years, causing a surge in meme stocks like GameStop and AMC Entertainment.
- GameStop’s stock rose more than 100% in early market trading Monday, being halted for trading several times due to volatility.
- Memecoins like Dogecoin and Shiba Inu also saw significant price increases following Roaring Kitty’s return, with Dogecoin up around 58% over the past 24 hours.
The popular Roaring Kitty account returned to social media over the weekend for the first time in years, causing a resurgence in interest for meme stocks and memecoins. Keith Gill, known as Roaring Kitty online, was at the center of the 2021 meme stock craze along with the subreddit r/WallStreetBets. His return has shaken up the markets again as traders look to replicate the massive gains seen last time around.
Roaring Kitty’s Return Boosts Meme Stocks
On Sunday night, Gill’s TheRoaringKitty account on X posted for the first time since June 2021. The simple meme post caused GameStop’s stock to spike over 100% Monday morning, being halted several times due to the volatility. Gill and r/WallStreetBets were key players in the 2021 frenzy that drove GameStop, AMC, BlackBerry, Bed Bath & Beyond and other meme stocks up over 1000% that year.
Memecoins Also Surge
At the same time in early 2021, Dogecoin surged from under $0.01 to over $0.50 thanks to promotion from Roaring Kitty and the WallStreetBets crowd. Now, Dogecoin and other memecoins like Shiba Inu have jumped 50-60% following Gill’s return. The GME meme token, named after GameStop’s ticker, rose over 1200% Monday with huge trading volume as traders look to replicate last year’s gains.
The Robinhood Connection
Much of the 2021 meme stock mania centered around the trading app Robinhood. As volumes surged, Robinhood halted trading on meme stocks like GameStop, sparking outrage from users. The frenzy led to lawsuits and investigations into Robinhood’s business practices. Crypto trading now makes up a significant portion of Robinhood’s business. The company is currently facing SEC action over alleged securities violations related to its crypto business.
Conclusion
The return of Roaring Kitty has reignited interest in meme stocks and memecoins. Traders are looking to recapture the massive gains from 2021’s frenzy. However, the mania also drew intense regulatory scrutiny on Robinhood and risks for individual investors chasing temporary spikes. It remains to be seen whether history will repeat itself or regulators have learned lessons to better oversee these speculative areas of the markets.
