What's Going On With GameStop Stock?

GameStop Corp GME shares are trading higher Thursday. The stock appears to be moving on continued momentum. Here’s a look at what’s going on.

What To Know: GameStop shares surged in early May after Keith Gill, also known as "Roaring Kitty," made his return to social media following three years of silence. Gill is often credited with spearheading the meme stock movement of 2021 that saw multiple heavily shorted stocks squeeze higher as retail traders piled into the names.

Gill had been inactive on social media since he posted what he called a final position update on Reddit's WallStreetBets in 2021. But he broke his silence on X last month when he shared a meme of a person sitting up and leaning forward in a chair. GameStop stock has seen increased attention since the post.

Gill posted his most recent update to Reddit on Sunday — a screenshot that appeared to show he was holding 5 million shares of GameStop and 120,000 call options expiring later this month. The post has raised a lot of questions about potential stock manipulation.

The U.S. Securities and Exchange Commission is reportedly looking into recent options trading activity in GameStop and Gill is facing increased scrutiny from Massachusetts securities regulators over potential manipulation. E-Trade is also reportedly trying to decide whether to ban Gill from its platform.

Related Link: SEC Chair Gary Gensler Fields Questions On AI, ‘Roaring Kitty’ And Congressional Trading: ‘Disclosure Doesn’t Necessarily Protect A Bad Actor’

Despite the uncertainty surrounding recent trading activity in GameStop, traders continue to bid up the meme stock ahead of earnings next week. GameStop shares were up approximately 45% over the last week at the time of writing and the stock continues to trade on above-average volume.

GameStop is due to report earnings for the first quarter after the market close on June 11. The company is expected to report a loss of 9 cents per share and revenue of $1.05 billion, according to estimates from Benzinga Pro.

Check This Out: Roaring Kitty’s GameStop Trades Exploit SEC’s Regulatory Gaps, Experts Warn: ‘This Is Obviously Market Manipulation’

GME Price Action: GameStop shares were up 5.56% at $33.33 at the time of publication, according to Benzinga Pro.

Photo: JJBers from Flickr.