Reddit and Robinhood Rally as previously known Meme Stocks Soar

The stock market witnessed significant activity on Monday as shares of Reddit (NYSE: RDDT) and Robinhood (NASDAQ: HOOD) surged, accompanied by a notable increase in GameStop's (NYSE: GME) stock, which skyrocketed by 80%, now sitting up 72%. The resurgence in trading enthusiasm is believed to have been catalysed by the apparent return of Keith Gill, better known as “Roaring Kitty,” to the social media scene.

Reddit's stock price climbed over 10%, reaching a peak not observed since March, while Robinhood's shares are up 5% so far. These two companies, which were not publicly traded during the height of the 2021 meme stock rally, now find themselves in the limelight with Reddit having gone public in March of the year following Robinhood's IPO in July 2021.

The ripple effects of this movement could extend beyond mere stock price appreciation. For companies like Robinhood, a retail trading platform, increased trading activity could translate into higher transaction-based revenues. Similarly, Reddit stands to gain from heightened activity on its forums, particularly the WallStreetBets subreddit, renowned for its pivotal role in the meme stock phenomena.

During the 2021 meme stock mania, GameStop, among other stocks such as AMC (+41% today), saw its value dramatically ascending owing to collective retail trading driven by social media dialogue, particularly on platforms like Reddit, but also Twitter and Youtube.

While the driving force behind the renewed interest in meme stocks is being said to be the reappearance of “Roaring Kitty,” the broader implications suggest a possible revitalisation of retail trading participation and options trading.