Meme stock rally lifts Gamestop: Video game retailer almost doubles in early trading

Meme stock: Gamestop almost doubled in early trading and was up around 24% last night

Meme stock mania gripped trading rooms yesterday as shares in Gamestop soared.

The video game retailer almost doubled in early trading and was up around 24 per cent last night. The rally came after Roaring Kitty – a social media account run by financial influencer Keith Gill – revealed a £91million stake in the group.

The screenshot, posted on the site Reddit, suggested that Gill may own as many as 5m shares in the company, fuelling investor confidence in the stock.

Gill was one of the most notorious pandemic-era traders and fuelled a buying spree of Gamestop shares three years ago. With his help, the stock climbed above $120 in early 2021 from as little as $3 in the space of three months.

Gamestop shares eventually fell back in 2021 but the episode inspired the film Dumb Money.

Meme stocks are those backed by ordinary investors who group together online to drive up the value of companies that hedge funds are betting against through so-called ‘shorting’.

When the stock goes up and more investors pile in, the hedge funds incur huge losses.