Reddit, Robinhood shares surge as ‘Roaring Kitty’ sparks GameStop GME rally [Video]

Shares of Reddit and Robinhood rose sharply on Monday as social media-fueled retail trading appeared to be making a comeback.

Reddit rose more than 9%, hitting its highest level since March. Retail brokerage stock Robinhood climbed 4%, cutting some of its losses from last week.

The moves came as GameStop soared 80% following the apparent return of “Roaring Kitty,” aka Keith Gill, the retail trader who was at the center of the meme stock phenomenon in 2021. Gill made a post on his previously dormant X account on Sunday.

Both Reddit and Robinhood could theoretically benefit from a return of the retail trading frenzy. Reddit’s WallStreetBets chatroom was highly active during that period, and increased retail trading could boost revenue at Robinhood.

Citizens JMP equity research analyst Andrew Boone said that while he didn’t see any fundamental reason for Monday’s rally for Reddit, increased user activity would help boost the company’s advertising business.

“At …