hen meme stock trader Keith Gill, better known by his online alias "Roaring Kitty", posted a screenshot revealing his $116 million GameStop position to Reddit over the weekend, it appeared to trigger another surge in the stock's price. However, the 37-year-old's influence over GameStop's volatile share value through posts on social media platforms may now cause issues for his brokerage account.
E-Trade Considers Whether Gill is Manipulating GameStop Stock
According to a report by The Wall Street Journal, citing unnamed sources familiar with the matter, E-Trade is currently evaluating whether Gill's activity constitutes stock manipulation. As Gill's posts have coincided with sharp increases in GameStop's stock on multiple occasions this year, his broker is assessing the risks associated with allowing him to continue actively trading through their platform. Should E-Trade deem Gill to be purposely moving the share price, they may remove his account to avoid potential regulatory issues or backlash from critics claiming price manipulation.
However, shutting down Gill's popular account would certainly anger his large following of individual GameStop investors. With over 1 million followers on Twitter, "Roaring Kitty" has become a figurehead for the meme stock community. Banning him could sour E-Trade's reputation among these retail traders and subscribers to Gill's social channels. As a result, the brokerage is said to be carefully weighing the potential pros and cons of restricting his activities on their platform.
Gill's GameStop Holdings Surpass $140 Million
Curiously, around half an hour after the Wall Street Journal broke news of E-Trade's review, Gill updated Reddit to show he now owns nearly 229,000 GameStop shares worth over $140 million. This public disclosure of an increased position shortly after the report only intensified scrutiny of Gill's influence. While some view him as a leader spearheading retail investor power over Wall Street, critics argue his massive holdings and repetitive posts demonstrating gains introduce reasonable questions around inadvertent market manipulation.Β
As the figure that propelled GameStop's initial surge in January 2021 with his conviction buys, Gill brought major attention and capital into the stock. He testified before Congress about his rationale for investing in what he saw as an undervalued company with upside. However, with GameStop shares rising another 21% on the day of his latest bold $140 million bet reveal, Gill's online updates continuously coincide with significant price swings. E-Trade must now determine if keeping their highest profile client is worth the compliance risks in this controversial situation.