Following a report that E*Trade may kick stock guru Roaring Kitty off its platform, some of his fans have wondered if his alleged market manipulation isn’t exactly what politicians and Wall Street traders do daily.
Top executives at the Morgan Stanley-owned brokerage firm are concerned that Roaring Kitty, real name Keith Gill, wields outsized influence online that could lead him to manipulate stocks for his own benefit, the Wall Street Journal reported, citing people familiar with the matter. Those weighing in on the decision by E*Trade and Morgan Stanley were particularly concerned about the large amount of options Gill purchased just before he helped breathe new life into the GameStock trade with his first social media post in years on last month. This week, a screenshot of Gill’s brokerage account showed he had $260 million staked in the stock.
Since returning to social media last month after a three-year hiatus, Gill has posted a series of cryptic messages about. His posts are mostly memes, and few mention Stoppage of play directly. The company’s shares are up 56% since the last trading day before Gill returned to social media.
The report that Gill could be banned from E*Trade has reignited a anti-establishment uproar which first fueled the meme stock frenzy in 2021, as the film highlights Stupid money. At the time, retail traders were attacking hedge funds like Ken Griffin’s $62 billion Citadel and now-defunct Melvin Capital, accusing them of rigging the game.
While it’s unclear whether E*Trade will actually ban Gill or drop the issue, some fans of the retail investor said what he’s doing is no different than what bigwigs at Wall Street.
“How is it on national television to shit on a stock, or tell people what to buy, it’s not market manipulation, but it is,” wrote a Reddit fan called CedgeDC.
Wall Street traders and other experts often appear on television to talk about public companies. Short Sellersin particular, are known to pay public campaigns against the stocks they sell short.
Some on social media also pointed out that politicians often trade stocks, even for companies. directly influenced by their legislative committees, without breaking the law.
Morgan Stanley-owned E*Trade is considering banning Keith Gill, known as Roaring Kitty or DeepFuckingValue, from its platform over concerns of potential stock manipulation related to his recent purchases of GameStop options.
So…politicians can negotiate using insiders…
– Capital (@CapStonkHQ) June 3, 2024
Gill owned approximately $140 million worth of GameStop stock Monday Update on Reddit, where he goes by the pseudonym Deep F——Value. The Securities and Exchange Commission also reportedly examined options trades made around the time of Gill’s tweets, the Newspaper ” reported, although it is unclear whether they are directly investigating Gill.
An E*Trade spokesperson declined to comment on whether the company plans to remove Gill from the platform. An SEC spokesperson said it does not comment on the existence or non-existence of a possible investigation. Gill did not immediately return a direct message on Reddit.
As E*Trade considers whether to ban Gill, it also questions whether the move could cause an exodus of users from the platform. Gill’s 1.4 million followers on X could quickly turn against the platform if he spoke out against them, explained some Morgan Stanley employees, according to the Newspaper.
The distrust of institutions held by Gill’s army of loyal traders means that E*Trade’s hesitation has only made him more likable in their eyes.
“Interesting decision from E*Trade. If they’re considering removing Roaring Kitty, that only proves he’s on to something big,” one fan said. job on X.
