Roaring Kitty’s gamification of GameStop is a menace to the market
Keith Gill — also known as “Roaring Kitty” — has become a hero of the people, but he is also a menace to stable markets.
In terms of entertainment value, the reappearance of vigilante investor Roaring Kitty has been a highlight of the year so far. The enormous volatility and questionable trading it has prompted, though, is not something to be celebrated — indeed, it is a worrying signal.
Kitty, real name Keith Gill, emerged from retirement on May 13, delighting keyboard warriors everywhere and causing a 180% surge in GameStop’s stock, which flew from $17.46 to $48.75 by the close of trading on May 14.
Just a few days later — on May 17 — the firm announced it had sold 45 million shares, capitalizing on the pump to raise nearly $1 billion for the treasury. At the same time, preliminary results predicted losses of between $27 and $37 million for the previous quarter.
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Author: Lucas Kiely
