Viswa Vanapalli
Netflix’s ‘Eat the Rich: The GameStop Saga’ is a three-part docuseries exploring how GameStop’s stock price soared in early 2021 after multiple investors began buying shares. It all started with Keith Gill’s decision to purchase stocks in the company in mid-2019, believing it was undervalued. At one point, GameStop’s share price rocketed to more than $400, leading many to profit as a result of what was termed a short squeeze. So, if you’re wondering how much Keith gained during all of this, here’s what we know.
Keith Gill Made Millions in GameStop Stock
Keith Patrick Gill, who worked as a financial wellness education director for MassMutual, began monitoring GameStop’s stock price sometime in 2019. By June that year, he believed the price was less than its fair value and purchased some call options. Over the next couple of years, Keith continued to increase his position because he felt that GameStop was undervalued. Keith later said, “The market was underestimating the prospects of GameStop’s legacy business and overestimating the likelihood of its going bankrupt.”
Keith put in about $53,000 and began posting updates regularly on WallStreetBets, a forum on Reddit. As Roaring Kitty on YouTube, he talked about GameStop being a good investment. In August 2020, the company’s stock price surged after Ryan Cohen, an entrepreneur, bought a significant stake. This led to Keith’s investment going up to $1 million. As a result, many other traders followed his actions, and more people bought GameStop stock. This meant that the share price kept going up.
In January 2021, Keith’s investment value skyrocketed to $48 million because of the increase in GameStop’s share price; it reached around $483 at one point. In response, Keith was surprised at how lucrative it turned out to be, saying in an interview from around the same time, “I thought this trade would be successful, but I never expected what happened over the past week.”
However, in February 2021, Keith’s stated that his share value decreased by $13 million in a day after GameStop’s share price dropped to $92.41 on February 3. However, the market volatility didn’t seem to have affected Keith’s belief in the company’s value. In the same month, he bought an additional 50,000 shares, bringing his total to 100,000 shares worth about $4 million. At that point, apart from GameStop shares, Keith had $1.5 million in GameStop options contracts and an additional $11.9 million in cash.
In April 2021, Keith exercised his 500 call options contracts before expiration, giving him 50,000 more shares at $12. Apart from that, he bought 50,000 shares yet again, doubling his total from a couple of months prior. Keith’s shares were estimated to be worth more than $30 million at that point. As of April 16, 2021, Keith’s post on the Reddit forum suggested that he was up by nearly $20 million. Back then, GameStop’s share price was $154.69. As of February 2022, the price was around $112, meaning Keith’s investment was still wildly profitable.
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