:max_bytes(150000):strip_icc()/Gamestop-AMC-91e8b4c0ff934728bed1ca63f966b157.png "GameStop, AMC Rally Fades Amid Reports E*Trade Is Considering Banning Keith Gill")
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Key Takeaways
- Monday’s rally in GameStop and AMC shares faded Tuesday following a report that Morgan Stanley’s E*Trade is considering banning Keith Gill from the trading platform.
- Gill, also known as “Roaring Kitty,” was one of the key drivers of the 2020 and 2021 meme stock craze.
- Recent rallies fueled by Gill’s social media posts raised concerns that he could stoke enthusiasm for the stocks with posts for his own gain, the Wall Street Journal reported.
Monday’s rally in GameStop (GME) and AMC Entertainment (AMC) faded Tuesday following a report that Keith Gill, one of the key figures behind the meme stock rallies, may be barred from online trading platform E*Trade.
Recent stock swings fueled by Gill’s social media posts raised concerns at Morgan Stanley’s (MS) E*Trade that Gill could be capable of manipulating stock prices for his own benefit, the Wall Street Journal reported Monday evening.
Monday’s Meme Stock Rally Sparked by Gill’s Post
Sunday night, a Reddit account belonging to Gill posted a screenshot of a portfolio indicating he owned 5 million GameStop shares worth over $115 million at the time of the screenshot. GameStop shares rocketed higher on Monday morning, nearly doubling in value before narrowing to a 21% gain by the time markets closed.
Shares turned lower Tuesday, and were down 2.7% at $27.26 as of 3 p.m. ET, though despite Tuesday’s losses, GameStop shares have surged nearly 60% since Gill reappeared online last month after an extended absence of nearly three years.
Other meme stocks like AMC and Tupperware Brands (TUP) also rose Monday, while BlackBerry (BB) climbed before ending Monday flat. All three stock were lower Tuesday afternoon, with AMC shares down 1.2% at $4.77, BlackBerry 1.4% lower at $2.74, and Tupperware dropping 1.7% to $1.75.
No Change Yet by E*Trade or Morgan Stanley
While no change to Gill’s status has been made yet by E*Trade or Morgan Stanley, the companies are reportedly considering whether Gill’s posts last month and Sunday qualify as market manipulation and justify removing Gill’s account from their platform, according to the Journal.
The companies are also reportedly considering whether the move would be worth the negative attention it could generate among the online retail trading community, similar to the backlash Robinhood (HOOD) received when it limited trading in GameStop on its platform in early 2021.
The Securities and Exchange Commission and securities division for the state of Massachusetts, where Gill reportedly lives, are investigating the amount of trading activity around GameStop, the Journal reported.
E*Trade parent Morgan Stanley declined to comment on the Journal report.