Roaring Kitty’s GameStop Return: A Sequel We’ve Seen Before?

Remember GameStop? The video game retailer that became the poster child for retail investor power in early 2021? Well, it’s back in the news, but not for the reasons you might expect.

The Hype is Back, But the Hero’s Gone:

Keith Gill, aka Roaring Kitty, the YouTube influencer who famously championed GameStop in 2021, recently announced he’s selling his remaining shares. The news sent ripples through the stock market, but not the kind that would make you think the hero is back.

The Numbers Tell the Story:

• GameStop’s stock price: While it did see a slight bump after Gill’s announcement, it’s still far from its peak of $483 in January 2021. It’s currently trading around $20, a significant drop from its pre-meme stock days.

• Gill’s Influence: While Gill’s 2021 social media campaign was a driving force behind GameStop’s meteoric rise, his recent selling seems to have had a minimal impact on the stock’s performance.

The Villain is Missing:

The initial GameStop saga was fueled by the perceived villain: hedge funds, who were shorting the stock. But this time around, the narrative feels different. There’s no clear antagonist, no blatant market manipulation, and no obvious “enemy” to rally against.

The Sequel We Didn’t Ask For:

This return to the GameStop story feels more like a predictable sequel to a blockbuster movie, one that lacks the same spark and excitement. The hero is absent, the villain is unclear, and the plot feels like a rehash of a story we’ve already seen.

What Does This Mean for Investors?

While GameStop might be making headlines again, investors should be cautious. The stock’s performance in 2021 was fueled by hype and speculation, and this time around, the fundamentals haven’t changed. There’s no guarantee of a repeat performance.

The takeaway:

Roaring Kitty’s return to GameStop is a reminder that hype can be a powerful force in the stock market, but it’s not always sustainable. This latest chapter might be a cautionary tale for investors who are tempted by the allure of meme stocks.