Reddit trader who claimed to have earned tens of millions of dollars by leading an army of amateur investors to buy shares in GameStop – a campaign to confront Main Street and Wall Street – lost $ 13 million on Tuesday as fighter shares. the video game retailer has withdrawn.
Keith Gill, nicknamed “DeepF *** ingValue” on Reddit and “Roaring Kitty” on YouTube, revealed in a post on the WallStreetBets panel that the value of his GameStop holdings had dropped to $ 7.6 million. This dropped from nearly $ 21 million the day before to $ 50 million from last week, when GameStop shares reached $ 483 each.
On Tuesday, Gill posted on Twitter an image of a shocked-looking kitten raising a paw on his face.
Gill still seems to be in the dark on his GameStop investment. The brokerage statement that the former financial advisor MassMutual posted on Reddit on Tuesday night showed a cash balance of almost 13 million dollars. He publicly revealed that he was buying GameStop shares in mid-2019. At the time, the shares were trading at just over $ 4 per share, while stock options cost around $ 50,000.
It is unlikely that many ordinary investors who rushed to GameStop stocks and cheered each other on the WallStreetBets Reddit forum did not make such a large profit. GameStop shares rose slightly on Wednesday to just over $ 93 at noon. But the retailer’s stock price has fallen in the past week, losing more than 80 percent of its value and wiping out nearly $ 30 billion from GameStop investor accounts.
U.S. Treasury Secretary Janet Yellen will meet with other top regulators this week to discuss volatile trading in GameStop, as well as the actions of other so-called “meme stock” companies and even the price of silver, all apparently caught in the recent commercial frenzy fueled by social media.
Shares of the AMC Entertainment movie chain returned slightly on Wednesday, to almost $ 8.50, after falling 40 percent on Tuesday. Shares of the former BlackBerry mobile device maker, another stock that was heavily mentioned in WallStreetBets, rose Wednesday by just 14 cents to just under $ 12. The shares of that company were up to $ 28 last week.
Stock price movements come against growing evidence that some hedge funds have played both sides in the GameStop drama. On Tuesday, Bloomberg reported that Mudrick Capital, a $ 3 billion hedge fund, made nearly $ 200 million by betting that shares of AMC and GameStop would increase last month. It was previously reported that a number of hedge funds short-circuited or bet against GameStop and other stocks, helping to increase the shares of those companies.
There is also concern that discussions about WallStreetBets are being interrupted by robots. CBS MoneyWatch reported Monday that moderators of the discussion board recently detected a “large amount” of bot activity in the recommended stock content that was posted in its group.