Shares of GameStop (GME) experienced a significant 21% climb on Monday, as the renewed frenzy surrounding meme stocks shows no signs of abating. The video game retailer's stock soared following a Reddit post by stocks influencer Keith Gill, also known as "Roaring Kitty," where he revealed his purchase of nearly $116 million worth of GameStop stock.

Gill, who gained notoriety during the social media-fueled hype around GameStop shares in 2021, had remained silent on his Reddit account for over three years. However, his recent post sparked excitement among traders, causing GameStop's stock to surge by as much as 75% earlier in the day. Eventually, the gains were pared down.

The phenomenon of meme stocks refers to shares that experience substantial value fluctuations based on their popularity within trader communities on social media. GameStop was the catalyst for this trend in 2021, subsequently extending to other companies such as AMC Entertainment (AMC) and Bed, Bath and Beyond, which has since filed for bankruptcy.

In parallel, shares of AMC Entertainment also saw a surge of nearly 13% in morning trading on Monday. Gill's influence on GameStop's stock price was previously demonstrated when he posted a meme on another platform, X, featuring a man leaning forward in a chair while holding a video game console. This post, Gill's first in three years on the platform, had a similar effect, attracting attention and driving up the stock's value.

Keith Gill was notably active on the WallStreetBets subreddit, a popular forum where Reddit users discuss various stock-related topics. It was through this online community that retail investors, motivated by targeting short-sellers, propelled GameStop's stock to astonishing heights earlier this year.

During his testimony to the US Congress on the GameStop frenzy, Gill described himself as a casual daytime trader, clarifying that he did not intend to further fuel the GameStop craze. Instead, he believed that the company's stock presented an attractive investment opportunity for interested parties.

As meme stocks gain continued momentum, investors and analysts remain captivated by the power of social media-driven trading, causing traditional market dynamics to be questioned and reevaluated. The ongoing saga surrounding GameStop serves as a testament to the influence of online communities in reshaping the stock market landscape.

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