Roaring Kitty Sparks Meme Stock Surge with Cryptic Post Featuring Time Magazine’s 'You' Cover

Roaring Kitty Reignites Meme Stock Frenzy

A sudden surge of volatility swept through the US equity market after a cryptic post from Keith Gill, better known online as Roaring Kitty. Famous for his role in the 2021 meme-stock craze, Gill reignited the flames of speculation with an enigmatic tweet on X (formerly Twitter). The post sparked a rally in a select group of meme stocks, including GameStop, AMC Entertainment, Unity Software, and Clear Secure, leading to a brief but notable surge in their share prices.

This post comes as the broader market shows signs of excess, with Bitcoin breaking new records and stock indices hitting fresh highs. The recent uptick in meme stock activity is a reminder of the unpredictability and volatility of the retail-driven trading phenomenon that swept the market in recent years.

The Cryptic X Post: Time Magazine and the Mystery Behind the Image

Keith Gill’s recent post on X was anything but ordinary. The trader shared an edited image of Time magazine’s famous 2006 cover, which originally depicted “You” (meaning the American public) as the “Person of the Year.” In this revised version, the cover features a blank computer screen with a media player resembling YouTube.

What made the post even more intriguing was the complete absence of any accompanying text or explanation. The image left much to interpretation, and traders quickly jumped to conclusions, leading to a meme stock rally.

Gill’s choice of a Time cover image is particularly noteworthy, as it echoes themes of public influence and collective action, key elements of the meme stock movement. Time’s 2006 cover celebrated the power of the individual, and by invoking this iconic image, Gill seems to be suggesting the return of collective retail investor power, just as it was seen in the 2021 meme stock rally.

Meme Stock Surge: GameStop, AMC, and More

The post immediately impacted several meme stocks, most notably GameStop and AMC Entertainment—two names forever linked to the 2021 retail trading frenzy.

• GameStop shares soared by as much as 14% during the day, triggering a volatility halt, before ultimately closing up 5.9%.
• AMC Entertainment also saw a similar price spike, briefly rising before closing 5.9% higher.

This spike in share prices was largely attributed to the renewed excitement surrounding these stocks, thanks to Gill’s post. Although both GameStop and AMC had been struggling to maintain momentum after the initial meme stock boom, they were once again thrust into the spotlight.

Unity Software and Clear Secure: Unexpected Meme Stock Plays

In a surprising twist, Gill’s post also led to a rally in stocks that were not traditionally part of the meme stock category.

• Unity Software Inc., ticker U, saw its shares climb by as much as 8.2% during the day, before closing up 4.9%. This jump seemed to come from an enthusiastic response from traders, who saw the company as a new meme stock opportunity.
• Clear Secure Inc., which operates airport security systems under the ticker YOU, also saw unusual movement. After an initial 4.6% drop, the stock rebounded to close 1.1% lower, suggesting traders were betting on the “YOU” reference in Gill’s post.

These seemingly unrelated stocks became the center of attention, with traders speculating that the cryptic reference to “YOU” on the magazine cover was a nod to any company or entity with “YOU” in its ticker or name.

Meme Stocks and the Broader Market Context

The meme stock rally that followed Gill’s post was not isolated. It occurred amid broader market conditions that are showing signs of excess. Bitcoin recently surpassed $100,000 for the first time, and stock prices continue to climb, with credit spreads remaining tight. These factors suggest that investors are feeling optimistic about the future, but also indicate the possibility of speculative excess in the market.

This rally is just the latest in a series of unpredictable movements in the meme stock world, a phenomenon that was first ignited in early 2021. Traders—many of them retail investors—have latched on to these stocks, often using social media platforms like Reddit and X to generate interest and push stock prices higher.

The combination of social media influence, retail investor enthusiasm, and volatility has led to wild swings in the stock prices of companies like GameStop and AMC, which had struggled to maintain their heights after the initial craze.

Options Activity and Unusual Trades: A Sign of Renewed Meme Stock Speculation

Gill’s recent post had an immediate impact on the options market, with a surge in trading volume.

• Unity Software saw a spike in bullish options activity, particularly in call options. This activity sent options volume to its highest level since late September, while the one-month call skew (the difference in prices between short-term and longer-term calls) more than doubled from the previous day.
• Meanwhile, unusual options trades were also seen in Clear Secure, where a multi-legged bet was made. A trader bought a $30/$40 call spread, expiring in May, and financed the purchase by selling put options at a $20 strike with the same expiration. This trade seemed more like a hedge rather than a directional bet, but it still caused a significant increase in call volume and open interest, sending Clear Secure’s options market to all-time highs.

This increased options activity highlights how much of the market’s movement in meme stocks has been driven by speculation and the influence of retail investors. It also points to the growing role that options trading plays in amplifying stock volatility during meme stock rallies.

Roaring Kitty's Impact: A Legacy of Market Movements

This post marks Gill’s first on X since September, and it’s not the first time his cryptic images have had an outsized impact on the market. Earlier this year, Gill posted a picture of a dog in a scene from Toy Story, which caused a brief pop in meme stocks. In June, a post involving a cartoon dog led to jumps in shares of Chewy Inc. and Petco Health and Wellness Co. Gill had also disclosed a 6.6% stake in Petco in July before selling his position in October.

The 2021 meme stock mania, led by figures like Gill, is still a prominent part of market history. Investors who once became overnight millionaires on GameStop and AMC have continued to follow Gill’s posts, looking for signs of the next big meme stock opportunity.

Conclusion: The Power of Social Media and Retail Investors

Roaring Kitty’s cryptic X post is just the latest chapter in the ongoing saga of meme stock mania. Despite the passage of time since the original meme stock surge, Gill’s ability to move markets remains evident. Whether it’s GameStop, AMC, Unity Software, or Clear Secure, the power of social media and retail investors to drive stock prices is clear.

As the broader market continues to show signs of excess, it’s likely that this kind of speculative trading will continue to play a role in shaping stock movements. For now, the meme stock rally sparked by Gill’s post serves as a reminder of how much influence online communities and individual traders can wield in today’s financial markets.