The stock of the struggling retail chain GameStop was a crazy investment in 2021, rising from $20 to as much as $480. Now, the stock, which has since fallen sharply again, is experiencing another surge: The frontman of the original movement is back, Mister Deep Fucking Value himself. The stock rises by 74% in one day, and this morning a further 40%.
Who is the central figure?
- Keith Gill is the central person behind the hype around GameStop. He became known as “DeepFuckingValue” in 2021. On Twitter and YouTube, he appears as Roaring Kitty.
- The former insurance salesman became famous for investing against market logic in the GameStop stock and was able to increase his investment from $53,000 to a value of $50 million at one point. He fueled the hype around the stock by showcasing his trades on a Reddit thread “WallStreetBets” and supported them with funny memes.
- This was a bet against the “market”. Because GameStop was still selling physical copies of games in an increasingly digital market, the business was essentially doomed, like video rental stores. However, the bet against the market paid off.
Many Twitch streamers like xQc supported the wild trend in 2021:
This is what he did now: On May 13, Gill posted a single image on Twitter of a man sitting in a red chair leaning forward with a controller in hand.
There was no text accompanying the image.
The tweet has since been viewed 23.6 million times.
What effect did this image have? The stock of GameStop rose so rapidly that trading had to be suspended multiple times due to too much volatility.
Yesterday, the stock of GameStop closed with a gain of $13 and an increase of 74.4%.
This morning, in pre-market trading, the stock rose again by 41%.
Trading stocks is extremely volatile. This means that one can earn a lot of money but also lose a lot. An example of an investment that likely did not pay off for most is presented here: Anyone who invested €1,000 in the coolest gaming stock last summer now has just €40 left – Expert: “Terrible for esports”
