Online brokerage E-Trade is considering kicking out meme-stock trader Keith Gill from its platform over concerns about stock manipulation, according to The Wall Street Journal, a move that comes after Gill took to Reddit to show fellow investors he held nearly $116 million worth of GameStop stock over the weekend, triggering a spike in shares Monday.
Gill has more than 1 million followers on X. (Photo Illustration by Pavlo Gonchar/SOPA Images/LightRocket via Getty Images)
SOPA Images/LightRocket via Getty Images
Key Takeaways
- GameStop’s stock closed up 21% at $28 per share Monday after Gill revealed his large position in the video game retailer during the weekend.
- E-Trade is now considering whether Gill, who also sent GameStop shares surging 110% in May with a wordless social media post, can manipulate the stock, the Journal reported, citing unnamed people familiar with the matter.
- E-Trade and its owner, Morgan Stanley, are determining whether they want to risk raising the ire of Gill’s followers, some of which are fellow GameStop investors, by removing him from the trading platform, according to the Journal.
- GameStop shares slid 10% after the Journal’s report was published, though they still managed to close up 21% on the day and continued to rise in after-hours trading.
- Gill, known as “DeepF—ingValue” on Reddit, posted another screenshot of his position on the platform’s r/Superstonk forum nearly 30 minutes after the report published, suggesting he now holds a $140 million position in GameStop.
Big Number
71%. That’s how much GameStop shares have surged in the past month. The stock has significantly cooled off after rocketing up to $48.75 per share in the middle of May, when Gill returned to X, formerly known as Twitter, after years of inactivity.
Key Background
Gill is known for being the figurehead of GameStop’s 2021 surge, which took the stock from around $1 a share to as high as $120 as part of a battle against institutional investors who sought to short the stock. Known as “Roaring Kitty” on X, Gill has amassed more than 1 million followers on the platform and now actively posts on it following his nearly three-year hiatus. Gill’s investment activity has been scrutinized before, as the 37-year-old testified before Congress in 2021 at a hearing that dissected the GameStop surge and how it impacted retail investors and hedge funds. The Melvin Capital hedge fund shut down after it lost billions as it was forced to cover its short positions against the retailer.
