The stock market is really a fascinating beast. One day, some people are rich, and the very next day, some people are poor. If trading was an obscure way of investing money before the global pandemic for most of us, normal mortal humans, it is now a completely new story in 2021! Let’s take a closer look at one chapter of this story, a guy who made of fortune out of a crumbling company’s stock.
RoarKitty, also called DeepFuckingValue on Reddit, goes by the name Keith Gill in real life. He is a financial analyst who studied at Stonehill College in Massachusetts, United States. The Reddit user became very popular with the meme stock he started on the subreddit WallStreetBets, urging other users to go buy a certain stock in masses on different online trading platforms.
After that stunt, he also became famous on Youtube with his channel called RoaringKitty. Just in the last couple of months, his YT channel went from 50k subs to a staggering 500k+ subscriptions.
What happened with the GME stock price in January 2021?
So the Redditor DeepFuckingValue started a movement back in January 2021, pushing potential investors and trading enthusiasts to go buy GameStop shares. The company was in a financial crisis, partially caused by the COVID-19 situation but mainly due to the undeniable fact that people buy fewer physical video games than before. Also, it doesn’t help that there are so many easy options like Amazon for example.
The price was very low at the time, around $4 a pop in July from last year. The stock skyrocketed since a lot of Wall Street investors were trying to short sell the stock, which caused what we call a short squeeze. If you want to see what a short squeeze looks like, go see GME stock’s chart of January. Do you see the huge spike? That’s where the squeeze happened, making DeepFuckingValue (Keith Gill) millions in profit.
Is the same thing happening with other stocks like AMC?
The meme stock movements continue with AMC. Apes are fighting back the high selling pressure coming from the shorts. This is why you see the AMC stock price having a hard time going over the $60 bar and staying there. This is an unprecedented event in the stock market world and nobody knows how it is going to play out in the weeks to come.
If you want to invest in AMC or other meme stocks like Blackberry or Dogecoin, then recommend taking a moment to learn about your future investment. At the end of the day, you always have to invest in something you understand, even if it’s on a surface level.