Who is Roaring Kitty and what does that have to do with GameStop?!?!?!

Clown or Genius?

Roaring Kitty made a spectacular and much anticipated return to social media on Friday with a YouTube Live Stream to an estimated 600K viewers.

According to online reports, Roaring Kitty /aka/ Keith Gill is an American financial analyst and investor known for his posts on the subreddit r/wallstreetbets. His analyses of GameStop stock (GME) and details of his resulting investment gains—posted on Reddit under the username DeepFuckingValue (DFV) and on YouTube and X as Roaring Kitty—were cited as a driving factor in the GameStop short squeeze of January 2021, and as a spark for the subsequent trading frenzy in retail stocks. The rising stock value allowed Gill to turn a US$53,000 investment into one worth close to $50 million (as of January 28, 2021).

Gill's posts were described as "forthright, spreadsheet-laden content". His Reddit username derives from the investing term deep value, as Gill claims to be a proponent of value investing. His identity was uncovered to the public on January 28, 2021, after an investigation of public records and social-media posts.

Gill gave testimony as part of a virtual hearing held by the US House Financial Services Committee on February 18, 2021, as part of a discussion about when "short sellers, social media, and retail investors collide". Gill testified he "did not solicit anyone to buy or sell the stock for [his] own profit."

Much has been documented and shared online about Gill and is investments.  In fact, there's a documentary on Netflix solely focused on the rise and fall of GameStop and Gill's involvement as a social media influencer / investor.

Then There Was Silence

Roaring Kitty signed off and was silent for the last three years.  

Until Friday.

He appeared live and seemed to reiterate his previous fundamental belief in GameStop management and his "feelings" for the company's future success.

He also revealed his very large bullish position in GameStop supposedly worth hundreds of millions of dollars...

So What to Think of it All

At one point Gill became a chartered financial analyst and a licensed securities broker so one might think that he's not a complete clown...

What comes to mind for us is the weird combination of investing, entertainment, and social media influencer that resembles what Vince McMahon did for "professional wrestling" beginning in the 1970s in what went on to become WWE and the popular Wrestle Mania events. 

In each case, when you peel back the entertainment there's an underlying business model where people are making money. 

And in this case Roaring Kitty seems to be purring quite loudly.

Regardless of whether or not you believe the accusations of pump and dump the fact remains that despite Gill's entertainment antics he and assumingly many of his followers are making money.

Of Interest to Note

From a price action technical analysis perspective a company's stock price often moves in manners that can be anticipated by using price action tools and not always from a fundamental perspective.

For example, if hypothetical company XYZ were to publish a negatively perceived news oriented press release their share price would likely drop despite no change in the underlying business fundamentals.  The opposite scenario is often true as well.

Essentially, news events can often be a catalyst to fill technical levels.

So from our perspective, through his entertainment capabilities Gill has accidentally become such an influencer of a single stock the he becomes the external news event that drives GameStop's stock price. 

And what really leads us to believe this is how technically precise the GME stock price often moves.  That indicates to us that at least some of the investors/traders involved in GameStop actually know what they are doing, especially from a trading perspective. 

At one point during Friday's live stream Gill brought up the GME chart and used support/resistance and a trend line to back his bullish sentiment.

So regardless of what we or you think about all the shenanigans behind Gill's approach, an argument could be made that in some weird sort of way he's carving out a new way to invest with a cult like following that's not too different than the entertainment value provided by "professional wrestling."

We'd really like to hear your thoughts and opinions so please leave a comment down below.