GameStop and AMC Stocks Plunge After E*Trade Considers Banning Keith Gill in 2025

Key Highlights

• The surge in GameStop and AMC shares on Monday sharply declined Tuesday after reports surfaced that Morgan Stanley's E*Trade is contemplating banning Keith Gill from its trading platform.
• Keith Gill, widely known as "Roaring Kitty," played a pivotal role in the meme stock phenomenon during 2020 and 2021.
• Recent rallies driven by Gill’s social media activity raised alarms about potential stock price manipulation for personal gain, according to the Wall Street Journal.

On Tuesday, the momentum in GameStop (GME) and AMC Entertainment (AMC) shares slowed down following news that Keith Gill, a central figure in the meme stock movement, might face restrictions on E*Trade’s platform.

Concerns at Morgan Stanley’s E*Trade about Gill’s ability to influence stock prices through his social media posts have sparked discussions regarding possible market manipulation, as reported by the Wall Street Journal on Monday evening.

Monday’s Meme Stock Surge Fueled by Gill’s Social Media Post

On Sunday night, Gill's Reddit account revealed a screenshot showing ownership of 5 million GameStop shares valued at over $115 million at that time. This revelation triggered a near doubling of GameStop’s stock price Monday morning, closing with a 21% gain.

Despite Tuesday’s decline, with shares dropping 2.7% to $27.26 by mid-afternoon ET, GameStop’s stock has soared almost 60% since Gill’s return to online activity last month after a nearly three-year hiatus.

Other meme stocks, including AMC and Tupperware Brands (TUP), also experienced gains on Monday, while BlackBerry (BB) initially climbed before flattening out. All three saw declines Tuesday afternoon: AMC fell 1.2% to $4.77, BlackBerry dropped 1.4% to $2.74, and Tupperware decreased 1.7% to $1.75.

E*Trade and Morgan Stanley Yet to Take Action

Neither E*Trade nor Morgan Stanley has made any official changes to Gill’s account status yet. However, they are evaluating whether Gill’s recent posts might constitute market manipulation and if this justifies barring him from their platform, per the Wall Street Journal.

The institutions are also weighing the potential backlash similar to Robinhood’s 2021 controversy when it restricted GameStop trading, which drew widespread criticism from retail investors online.

The Securities and Exchange Commission and Massachusetts state regulators, where Gill resides, are reportedly investigating the trading activity surrounding GameStop, the report adds.

Morgan Stanley, E*Trade’s parent company, declined to comment on these developments.

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