The GameStop Guy is Back. But He Seems to Be Having a Mid-life Crisis. - Latest Global News

The GameStop Guy is Back. But He Seems to Be Having a Mid-life Crisis.

Roaring Kitty’s return has wreaked havoc on meme stocks. But the latest mania seems doomed to collapse.Roaring kitten; Getty Images; Alyssa Powell/BI

It was kind of cool that Keith Gill walked off into the sunset after the GameStop boom. Gill, known as Roaring Kitty on that you get involved in. After the mania subsided — and after a trip to testify before Congress — Gill, a 30-year-old father from Massachusetts, disappeared from the map. It was assumed that he probably made a lot of money from the whole thing, but no one really knows. He didn’t even take part in the big Hollywood movie about him that came out last year.

Now Gill seems to be back somehow. His Roaring Kitty account began tweeting again this week: on Sunday evening he shared an image of a man leaning forward in his chair, and on Monday he followed up with a series of video compilations of various films. The videos have a “we’re so back” tone, but it’s not clear What we are back. Does Gill have something to cook? Or is he just doing nonsense? It’s all pretty cryptic and doesn’t make much sense. He didn’t specifically say he was trading again or even mention GameStop. There’s a mid-life crisis – if you told me Gill was getting a divorce and buying a Porsche I wouldn’t be shocked.

Be that as it may, the market is enthusiastic. GameStop stock has risen sharply. It rose more than 70% on Monday and 60% on Tuesday, stopping trading several times due to volatility. The short sellers are doing badly again. Shares of AMC, GameStop’s meme stock, rose nearly 80% on Monday and 30% on Tuesday. The cinema chain used the rally to raise $250 million in new equity on the same day. Both gave back some gains on Wednesday, but are still well up this week.

The market casino is open again, at least for the time being.

The recent surge in these stocks makes no more sense than in 2021. GameStop’s fundamental business story hasn’t changed – it’s a troubled games retailer whose supposed turnaround hasn’t materialized. The same goes for AMC: The actual business didn’t get better overnight. What has changed is that Roaring Kitty tweets, and not even really about a company. It’s just meme time again. While Robinhood collapsed during the excitement a few years ago, now it’s e-trading that’s struggling.

Aside from stocks, cryptocurrencies have also been recovering recently. Bitcoin peaked in March, thanks in part to the launch of a number of Bitcoin exchange-traded funds. Crypto trading volume on Robinhood reached $36 billion in the first quarter of the year, a year-over-year increase of 224%. Even the crypto commercials are back. Crypto.com is running an ad during the NBA playoffs repeating the “fortune favors the brave” statement that Matt Damon made on his behalf during the Super Bowl in 2022; This time UFC fighters are featured and Eminem speaks. This all sounds pretty familiar to me, although as my colleague Peter Kafka likes to point out, no one is really pretending that this is what this crypto boom is all about Building anything or the coins do anything. “Numbers are rising” is the motto.

It all feels a little sad – like trying to recapture a moment and a mood long in the past. In 2021, people were stuck at home with money to lose, and buying GameStop shares was a way to channel some energy. The whole episode was exciting, novel and fun. Now it’s just like, OK, I guess we’ll do this again. Although the “little guys taking on Wall Street” story was exaggerated during the 2021 rally, the novelty and excitement of the move felt like a brief, market-distorting event. This latest bout of meme stock mania has a narrower focus: young, male, nihilistic. It seems more like a rush to a hot blackjack table than any upswing. And considering GameStop and AMC stocks have started falling, they’re already fading.

Maybe this run will be different and these stocks and coins won’t completely crash again, but I wouldn’t count on it. People are traveling more and there are more things to spend money on. These things are also more expensive due to inflation, and stimulus checks are not planned. If you bought GameStop or AMC stock in 2021, it might not be a bad time to think about selling some shares to break even. Also check the Dogecoin that you deposited into your Coinbase account a few years ago.

America has become a nation of gamblers – or perhaps it always has been, and the proliferation of sports betting, meme stocks and cryptocurrencies have only made this more evident. Roaring Kitty is back and people are throwing their money into the GameStop slot machine. Remember: the house always wins.

Read the original article on Business Insider

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