Part 3/9:
The initial surge of meme stocks, particularly GameStop, was sparked by social media hype, notably featuring influencers like Keith Gil, known as Roaring Kitty. Gil created videos highlighting GameStop's perceived undervaluation. This caught on among retail investors, fueling a massive rally.
In early 2021, the stock price skyrocketed. From trading around $5, it climbed to $50 within weeks, and then to nearly $500 in January — a near 10,000% increase from its original price. The surge was driven by a coordinated effort to trigger a short squeeze, targeting hedge funds and short sellers betting against the stock.