Just when it was beginning to look like this year’s meme rally might be fizzling out, Roaring Kitty is going all in with a huge new bet on gaming and entertainment services provider GameStop (NYSE:GME). Shares of the meme mania favorite are up nearly 90% today as a result.
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Kitty Roars Once Again
Roaring Kitty, whose legal name is Keith Gill, is famous for rallying day traders to invest in GME stock during the meme stock craze in 2020-2021. Last month, Gill posting only a few memes implying renewed interest in the action (after a gap of nearly three years) was enough to push share prices of stocks such as GME and AMC Entertainment (NYSE:AMC) skywards.
This month, though, Gill has revealed skin in the game with a huge $116 million bet on GME. Gill has bought five million GME shares at $21.27 per share and 120,000 GME call options with a strike price of $20. His options bet is worth around $65.7 million.
The disclosure of the bet has pushed GME shares nearly 90% higher today, adding to the 109% jump in the company’s share price over the past month. Moreover, Gill’s move comes only days ahead of GME’s first-quarter results. The company is slated to report its Q1 numbers on June 11. Analysts expect GME to post a net loss per share of $0.09 on $995.3 million in revenue. Last month, GME’s preliminary Q1 results indicated an improvement in its bottom line.
Is GameStop a Buy, Sell, or a Hold?
Despite the retail investor-driven frenzy, GME’s share price still remains nearly 64% lower over the last three years. Wedbush’s Michael Pachter, the lone analyst tracking GameStop at present, has reiterated a Sell rating on the stock, alongside an average GME price target of $7.
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