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How Roaring Kitty’s Return Impacted GameStop Stock and Some Crypto Assets
TheStreet’s Conway Gittens reports on the latest business news from the floor of the New York Stock Exchange as the markets close on Monday, May 13.
Related: GameStop Soars, Crushing Short Sellers, as ‘Roaring Kitty’ Returns
Full video transcript below:
CONWAY GITTENS: I’m Conway Gittens reporting for you on the latest from the New York Stock Exchange. Here’s what we’re watching today on TheStreet.
The Dow Jones snapped its longest bull run since December, ending an eight-day rally. The S&P 500 ended slightly lower, while the Nasdaq managed to eke out a gain. Investors turned cautious ahead of key inflation data due Wednesday. The inflation update could provide clues about when the Federal Reserve might start cutting interest rates.
In other news: The pandemic-related meme stock craze has made a comeback. GameStop shares soared on a simple social media post by investor Keith Gill — better known by his online handle “Roaring Kitty” — his first post in 3 years. Gill is credited with starting the meme craze in 2021.
The message posted on his verified account “X” was an image suggesting someone was sitting up and paying attention. There were no words and no mention of any action — but that didn’t stop investors from interpreting what they thought he meant. GameStop shares jumped 74% to close the day at $30.45. Trading in the stock was so volatile that it had to be halted multiple times on the New York Stock Exchange. AMC, another meme stock, jumped 78%.
In addition to the sharp rise in GameStop shares, a cryptocurrency that uses GameStop’s name, logo, and ticker symbol also rose more than 1,400% on the day. However, the cryptocurrency has no connection to the company itself.
But analysts were quick to point out the disconnect between GameStop the stock and GameStop the company. The video game retailer has lost money nearly every quarter for the past three years.
That will do it for your daily briefing. From the New York Stock Exchange, I’m Conway Gittens of TheStreet.
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