GameStop's 'Roaring Kitty' Sparks Meme Stock Rally After Return to Social Media

GameStop shares surged 75% on Monday after "Roaring Kitty" returned to X.com. This account is linked to a social media finance influencer who sparked the meme stock rally in 2021. The surge was the sharpest one-day gain since January 2021. AMC and Koss Corp also saw significant jumps in their stock prices. Keith Gill, known as "Roaring Kitty," played a key role in the Reddit rally that caused GameStop shares to skyrocket in January 2021. The rally led to losses for bearish hedge funds and drew attention from regulators. GameStop had a quarter of its shares in a short position, causing bearish investors to face significant losses. The Dow's winning streak ended as investors awaited the monthly inflation report for clues on future interest rate moves by the Federal Reserve. GameStop shares have seen a 70% increase today after "Roaring Kitty" posted online for the first time since 2021. The stock is down about 7% year-to-date. The S&P 500 is showing 5.4% earnings growth compared to last year, with GameStop shares gaining over 70% on Monday. Alibaba also rose more than 5% ahead of its fiscal fourth-quarter earnings report. GameStop and AMC shares surged on Monday after "Roaring Kitty" posted online for the first time in three years. The meme stock frenzy involved individual investors targeting short sellers and hedge funds, leading to a surge in stock prices. Short selling is when investors borrow shares with the expectation that the stock price will fall. The GameStop mania in early 2021 led to brokerages like Robinhood limiting trading in heavily shorted stocks, sparking a class-action lawsuit that was later dismissed.