(Reuters) – Shares of GameStop briefly reversed losses to trade as much as 4% higher on Thursday after Keith Gill, who helped drive a recent surge in the videogame retailer’s stock, gave testimony in a congressional hearing.
Known on YouTube as Roaring Kitty and widely followed on Reddit’s popular Wallstreetbets trading forum, Gill said he remains optimistic about the stock following its rally and selloff in January and February.
Wearing a suit jacket and striped tie, Gill, 34, addressed the hearing over video as he sat in a red videogaming chair.
In the background was a poster of a kitten dangling by one paw with the caption “Hang in there!,” an apparent message to fellow GameStop investors, many of whom now face deep losses after buying at the height of the stock’s rally.
“As for me, I like the stock. I’m as bullish as I’ve ever been on a potential turnaround for GameStop and I remain invested in the company,” Gill, who said played video games and shopped at GameStop in his youth, told the hearing.
Fueled by snowballing enthusiasm on Reddit, GameStop stock surged over 1,000% during two weeks in late January. The stock has since tumbled, but it remains up over 100% year to date.
Many Reddit users are still bullish and urge others in the discussion group sitting on painful losses not to sell.
Gill began sharing his positions on Wallstreetbets in September 2019, posting a portfolio screenshot indicating he had invested $53,000 in GameStop.
By late January, he was up over 4,000% on stock and options investments in the company, with his GameStop position plus cash worth nearly $48 million, according to his Reddit posts.
Gill appeared in front of the House finance panel along with senior executives from Robinhood, Melvin Capital, Reddit and Citadel.
GameStop’s stock was last down 1%.
Source: Read Full Article