Just like that, the GameStop (NYSE:GME) rally is back on. Today, shares of GME stock are roaring almost 30% higher as news hits the tape that Roaring Kitty’s YouTube channel has been updated.
Those following Keith Gill (aka Roaring Kitty) via his YouTube account haven’t seen much since the previous meme stock rally took GameStop on an incredible run and bought Mr. Gill a ticket to a hearing with lawmakers over the nature of his trading activity.
While regulators are likely to pay even more attention this time, as GME stock makes another similar move, it’s unclear exactly what Gill’s strategy is here. However, it is intriguing, and if new videos are posted, you can be sure that everyone will be tuning in (myself included).
Here’s what we know and what many retail investors on r/WallStreetBets are speculating right now.
GME Stock Soars on Roaring Kitty YouTube Channel Update
Whether or not Roaring Kitty is back, or simply playing around with his social media accounts for the first time in a few years, the signal is clear. He’s invested (seemingly never sold) and is adding to his rather incredible stake in the flailing video game retailer.
Gill’s X account still shows a schedule for his livestreams (Mon/Weds/Fri from 7 p.m.-10 p.m. EST), but it’s unclear if we’ll be seeing any sort of upgrade soon. It’s likely that his lawyers have said a thing or two about not saying anything at all, given how focused regulators were in his role as potentially leading a retail investing mob to create the sort of situation we saw in the first place.
I also think it’s interesting that this position is being built and that this social media activity is starting now. This is all noticeably happening very shortly after the Securities and Exchange Commission (SEC) shortened the settlement cycle to a T+1 cycle, in a bid to eliminate risks to the system (such as what was seen during the previous short squeeze). Back then, exchanges were not able to come up with the liquidity to cover transactions that had not yet settled (as it was a T+2 system).
In other words, it’s unclear if this stock squeezes again and how high it could go before regulators are forced to step in. If anything, we could be headed into one of the most incredibly volatile periods in the market, at least for this particular stock.
On the date of publication, Chris MacDonald did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
