Fintwit influencer Zack Morris appeared to potentially have insider knowledge about the return of famed investor “Roaring Kitty.”
Morris tweeted an image last week that was strikingly similar to one posted by Roaring Kitty, whose real name is Keith Patrick Gill, four days later. This coincidence has led to speculation that Morris was aware of the scheme ahead of time.
Gill’s reappearance on social media has reignited the meme stock frenzy. His post on social media platform X marked his first activity since June 2021, and it triggered a massive rally in classic meme stocks like GameStop and AMC.
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GameStop, which closed at $17.46 per share on Friday, skyrocketed to nearly $50 by Tuesday. Similarly, AMC more than doubled from $2.91 to over $6 per share in the same period.
Jay Ritter, a finance scholar at the University of Florida, noted that meme stock investors often counter short selling. This strategy, where investors sell borrowed shares hoping to buy them back at lower prices, is disrupted by coordinated buying that drives prices up.
Ritter explained, “This is kind of a self-fulfilling prophecy, where you got coordinated buying going on without any explicit agreement to be a member of the club.”
However, the rally in meme stocks saw a sharp reversal on Wednesday morning. GameStop dropped by 30% and AMC by 22%, indicating that the initial excitement might be waning.
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Dan Egan from Betterment predicted that this rally would be shorter-lived than the previous one in early 2021, when GameStop’s shares surged over 1,000%.
“There might be a large body of meme stockholders who bought during the last rally looking to get out,” Egan said. “People with a losing stock will be motivated to sell as soon as they’re back to even, which will put some downward pressure on the price as it hits higher price points.”
Morris has been active on X again less than a month after the criminal case against him and his group was dismissed without prejudice. The court had denied the government’s request to pause the dismissal, stating the government’s arguments were unconvincing.
Morris (legally Edward Constantinescu) was accused of fraudulently earning around $100 million through a stock-manipulation scheme. He is defending the case alongside his Atlas Trading group members: Perry Matlock, Thomas Cooperman, Gary Deel, Mitchell Hennessey, Stefan Hrvatin, and John Rybarcyzk. Daniel Knight is also a co-defendant for aiding the scheme via his podcast with Hennessey.
This legal development coincides with Morris’s return to social media after 15 months, where his first post was a retweet of a parody video featuring Donald Trump and Elon Musk as Power Rangers.
Information for this story was found via the sources and companies mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
