Introduction
GameStop (NYSE: GME), the favorite stock of meme-traders and retail investors, is in the spotlight once again. After a quiet period, GME stock once again made headlines with a stunning surge in prices that reminded everyone of the dramatic short squeeze saga in early 2021. But what is driving the stock in 2025? And should investors take this rally seriously?
The Comeback: GME Rallies in May 2025
In May 2025, GameStop shares experienced a massive surge, gaining more than 100% in just a few trading sessions. The sudden surge came when Keith Gill, also known as “Roaring Kitty” on social media — the same investor who played a key role in the 2021 meme stock rally — posted again for the first time in years.
His return to social media sparked a buying frenzy among retail investors on platforms like Reddit’s r/WallStreetBets, driving up GME stock as excitement and nostalgia flooded the market.
Why Is GameStop Stock Rising Again?
There are several reasons behind the renewed momentum:
1. Roaring Kitty’s Comeback
Keith Gill posted a cryptic image of a man sitting forward in a chair — a signal to many retail traders that he’s ready to dive back in. That simple image sent shockwaves through the community, triggering a fear of missing out (FOMO).
2. Short Interest Still Exists
GameStop still has a high short interest, meaning many investors are betting the stock will go down. When retail buyers start purchasing shares quickly, it can force short sellers to buy back stock to cover their positions, leading to a short squeeze — the same dynamic that fueled the 2021 rally.
3. Social Media Frenzy
On X (formerly Twitter), Reddit, YouTube, and Discord, GME is once again the talk of the town. The stock is trending, and many retail investors are jumping in for the thrill and the chance at big profits.
GameStop’s Business in 2025: What’s Changed?
While the stock is surging, GameStop’s core business still faces challenges. The company is trying to evolve from a traditional brick-and-mortar video game retailer into a more digital-focused business.
Some recent developments:
- New CEO Appointed: GameStop recently named a new CEO with experience in e-commerce.
- Digital Pivot: The company is slowly moving toward online sales and exploring new gaming-related technologies.
- Crypto and NFT Hype Died Down: GameStop once tried launching an NFT marketplace, but like many Web3 ventures, it didn’t gain long-term traction.
Financially, GameStop is still struggling with declining revenues and limited profitability, which raises concerns among traditional investors.
Should You Buy GME Stock Now?
This depends on your investment style.
- If you’re a long-term investor: Be cautious. GME’s fundamentals don’t justify the recent price surge, and the stock is highly volatile.
- If you’re a trader: There may be short-term opportunities, but it’s risky. Timing the meme stock waves is difficult, and prices can crash as fast as they rise.
Remember: don’t invest money you can’t afford to lose — especially in high-volatility stocks like GME.
What Wall Street Says
Most Wall Street analysts remain bearish on GME. They argue that the recent price movements are not supported by strong earnings or long-term growth prospects.
However, the stock remains unpredictable due to the influence of retail traders and social media hype, making traditional analysis less reliable.
Final Thoughts
GameStop is back in the headlines, not because of any commercial success, but because of internet-induced euphoria. The power of retail investors and online communities continues to challenge Wall Street norms.
Whether this rally will continue or fade as 2021 approaches remains to be seen. For now, GME is a perfect example of how emotion, internet culture, and investing can collide in today’s market.
Stay informed. Stay cautious. And never forget: the market doesn’t always follow logic — sometimes, it follows memes.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Always do your own research or consult a financial advisor before making investment decisions.
Why is GME stock going up in 2025?
GME stock surged in 2025 mainly due to renewed interest from retail investors, triggered by the return of Keith Gill (aka Roaring Kitty) on social media. His comeback led to a buying frenzy, similar to the 2021 meme stock rally, despite GameStop’s weak business fundamentals.
Is GameStop (GME) still a meme stock?
Yes, GameStop remains a meme stock. It’s driven more by internet hype, retail investor sentiment, and social media activity than traditional financial performance or earnings growth.
Who is Roaring Kitty and why is he important?
Roaring Kitty, real name Keith Gill, is a retail investor and YouTuber who became famous during the 2021 GameStop short squeeze. His influence in online investing communities has made him a key figure in GME’s price movements.
Should I invest in GME stock right now?
GME stock is highly volatile and speculative. It may offer short-term trading opportunities, but it’s risky for long-term investors due to weak fundamentals. Always do your own research or consult a financial advisor before investing.
What is a short squeeze?
A short squeeze occurs when heavily shorted stocks rise sharply, forcing short sellers to buy back shares at higher prices to cover their positions — which drives the stock price even higher. GME experienced one of the most famous short squeezes in 2021.