GameStop Soars After Roaring Kitty’s Comeback
On May 13, GameStop (GME) blasted up 74.4% after Keith Gill—the famed Roaring Kitty—posted on X/Twitter for the first time since 2021. His lone image, a selfie of him perched forward on a chair, became the meme‑stock catalyst that had everyone cheering.
Why the Post Ignited a Frenzy
- Viral moment. That single photo amassed over 20 million views in just 24 hours.
- Ambiguous message. No company names or strategy was mentioned—traders interpreted it simply as “We’re back!”
- Memelords in the know. The community that drove the 2021 craze saw the post as a signal to buy, fueling a surge even though no fundamentals changed.
Market Stats That Got Tick‑Tock
Before the alert:
- GME’s average daily volume hovered around 5 million shares.
- Its 14‑day average true range (ATR) was a modest $0.65.
Post‑alert, the numbers exploded:
- Volume jumped to >25 million shares daily, peaking at 180 million on May 13.
- ATR surged to $2.99—from $0.65 to $1.63 by May 10.
AMC Entertainment (AMC) also surged 78.35% that same day, trading ~473 million shares—well beyond its usual ~20 million‑share routine.
Analyst Take‑aways
Cory Mitchell of Trading.biz warned:
- Huge moves are great for short‑term traders, especially with high volume.
- These climbs are pure hype, not grounded in fundamental strength.
- Always use stop‑losses; the buying frenzy can collapse fast.
- GME’s P/E sits at a staggering 873 versus the market average of 27.
Bottom Line: Watch the Roller‑Coaster
Both GME and AMC are either minimally profitable or still losing money. Their recent spikes are driven by sentiment and speculation, not by a core business turnaround. If you’re eyeing these stocks, play it with caution—watch those risk‑management tools and ride the momentum only while it lasts.
