How Roaring Kitty's Wealth went from $53K to $300 million

[bjl584]

How Roaring Kitty's wealth went from $53,000 to nearly $300 million — and could one day top $1 billion (cnbc.com)

[kork13]

It's called "market manipulation", by way of his social media following & influence.

[Fishindude77]

Who / What is Roaring Kitty?
Consider me uninformed.

[kork13]

Who / What is Roaring Kitty?
Consider me uninformed.

I'm only tangentially aware ... But do you remember when Game Stop stock went bonkers then hard-crashed (maybe in 2021)? Roaring Kitty's influence & following were significant driving forces for that & other "meme stock" events. He's a player by way of steering people toward or away from certain stocks.

[disneysteve]

Who / What is Roaring Kitty?
Consider me uninformed.

I had no clue either until I read the article. Apparently it’s the twitter name of the guy who caused the Game Stop stock fiasco a while back.

[ua_guy]

Meme Stocks are like a modern Jim Cramer with a lot more adderall on board.

Think of the loads financial organizations spent on predictive AI, algorithms, computerized trading. Then some guy comes along on social media and gets followers to run up a stock for a company which has no value, no future, and blasts all the financial models and projections and professional advice, and outperforms everything and everyone.

[disneysteve]

Think of the loads financial organizations spent on predictive AI, algorithms, computerized trading. Then some guy comes along on social media and gets followers to run up a stock for a company which has no value, no future, and blasts all the financial models and projections and professional advice, and outperforms everything and everyone.

Aren't there laws against this type of activity? What's to keep anyone from doing the same thing - creating fake hype about a company to run up the stock, make a big profit, and then have it crash?

[ua_guy]

Aren't there laws against this type of activity? What's to keep anyone from doing the same thing - creating fake hype about a company to run up the stock, make a big profit, and then have it crash?

I'm not an expert, but I don't think there are explicit laws against this. However, The SEC has definitely joined the chat on this one.

[kork13]

I'm not an expert, but I don't think there are explicit laws against this. However, The SEC has definitely joined the chat on this one.

It's really not much different from what the SEC got after Elon Musk about a couple years ago. I don't remember how that ended up, but my general feeling is that the SEC doesn't really use its teeth very effectively to dissuade behaviors like this. Rarely any jail time, mostly either no penalty at all, or simply a fine far below what a person has made off of the market manipulation.

[james.hendrickson]

Meme Stocks are like a modern Jim Cramer with a lot more adderall on board.

Think of the loads financial organizations spent on predictive AI, algorithms, computerized trading. Then some guy comes along on social media and gets followers to run up a stock for a company which has no value, no future, and blasts all the financial models and projections and professional advice, and outperforms everything and everyone.

Yeah, this is called "market manipulation" and its almost certainly illegal.

[ua_guy]

Yeah, this is called "market manipulation" and its almost certainly illegal.

I think the SEC is grappling with finding on what grounds this kind of behavior may be illegal. There are great arguments that it isn't. Speaking of Jim Cramer, hear what he has to say on the issue..

https://www.tradingview.com/news/u_today:a15c3aca0094b:0-jim-cramer-breaks-silence-on-roaring-kitty-s-180-million-gamestop-bet/