GameStop Corp. is a well-known retailer offering video games and entertainment products through its physical stores and e-commerce platforms. The company operates in four key regions: the United States, Canada, Australia, and Europe. Across these regions, GameStop has a total of 4,169 stores, with 2,915 in the U.S., 203 in Canada, 404 in Australia, and 647 in Europe. While its retail operations primarily focus on games and entertainment technology, the company also runs pop culture-themed stores under the Zing Pop Culture brand in international markets, offering collectibles, gadgets, apparel, and other technology-related merchandise. Game Informer, the company’s print and digital gaming magazine, is another popular brand under GameStop’s umbrella.
Recently, GameStop’s stock experienced a sudden spike in activity following a social media post from Keith Gill, famously known as “Roaring Kitty”. His cryptic post on X (formerly Twitter), which included an image from the film Toy Story 2 with an altered dog’s face, marked his first post in over two months. The post quickly gained attention, sending GameStop’s shares up by 9% at one point, before stabilizing at a 4% increase to $23.39. This social media activity sparked a flurry of trading, with a well-timed trade in GameStop call options netting a handsome profit.
Approximately 10,000 GameStop Sept. 13 call options were purchased just 18 minutes before Gill’s post for $1.74 million. Shortly after the tweet, these contracts were sold for around $2.29 million, yielding a gain of $550,000 or about 30% in profit, according to Reuters’ calculations.
The GameStop Lawsuit and Accusations Against Keith Gill
Gill, a central figure during the meme stock mania of 2021, has faced legal scrutiny over his market influence. In July 2023, investors withdrew a lawsuit that accused Gill of engaging in a “pump-and-dump” scheme involving GameStop shares. The class action, initially filed in Brooklyn, New York, accused Gill of manipulating GameStop’s stock between May 13 and June 13 by accumulating large amounts of shares and call options, then selling off portions of his holdings for personal profit. Investors claimed that Gill’s social media activity caused GameStop’s stock price to fluctuate wildly, benefitting him financially at their expense.