Dumb Money

Keith Gill works as a financial analyst at MassMutual in Brockton, Massachusetts. Despite his conventional job, he finds a passion for the stock market, engaging with others in online forums.

In his free time, Keith adopts the persona 'Roaring Kitty' while livestreaming on the SubReddit r/WallStreetBets. His engaging personality earns him a loyal following of viewers interested in his stock market insights.

In July 2020, amid the COVID-19 pandemic, Keith notices GameStop's stock plummeting to just $3.85 per share, which he believes is significantly undervalued. Seeing an opportunity, he decides to invest his life savings to capitalize on this potential.

To invest heavily in GameStop, Keith sells off $50,000 worth of other stocks, positioning himself as a champion of the company. His conviction resonates with a growing audience, leading his livestreams to attract 412 enthusiastic viewers.

As more followers heed Keith's advice and buy shares, GameStop's price rises to $10. However, skepticism continues from his brother Kevin and others, who view this venture as nothing more than a gamble.

By January 2021, r/WallStreetBets garners substantial online activity that catches the attention of various hedge funds, including Melvin Capital Management, led by Gabe Plotkin. They are concerned that the rising interest in GameStop could threaten their short positions.

In a surprising turn, Keith and fellow retail investors push back against hedge fund short-sellers, causing GameStop's stock price to shoot up to $20. Gabe responds by shorting an additional 600,000 shares, further igniting retail excitement.

Through the Robinhood app, retail investors collectively drive GameStop's stock to a staggering $65, resulting in Keith accumulating $11 million in paper profits. His success triggers outrage among hedge fund managers who are losing billions.

As the number of retail investors swells to around 8 million, GameStop's shares soar to $350. This surge sparks conversations in financial circles and even reaches the White House, highlighting the stark dichotomy between retail and institutional investors.

The subreddit faces a brief suspension due to inappropriate content, inciting panic among its investors. As fear commands the trading floor, there is a sell-off of GameStop shares, drastically affecting its market value.

Under intense pressure from institutional players, the Robinhood app abruptly halts all buying of GameStop shares. This drastic measure results in the stock's rapid decline, plunging from $483 to $140 and igniting criticism from retail investors.

In the aftermath of the trading chaos, congressional investigations are launched to probe the activities of hedge funds and trading platforms, with Keith called to testify. He firmly defends the retail investors, arguing their right to engage in the market they believe in.

Despite the controversies and pressure surrounding him, Keith remains resolute in holding onto his GameStop shares. His outer composure inspires his followers to trust in the investment, inciting them to continue trading amidst the turbulence.

As the dust settles, it becomes evident that the dynamics of Wall Street have irreversibly changed. Keith experiences a quieter life but also chooses to gift his brother an expensive car, reflecting on the journey that brought him unexpected success.

The narrative concludes with a powerful observation that retail traders, once dismissed by the financial elite, have forever altered the economic landscape. Keith chooses to step back from his online presence, concluding his tale with newfound respect and understanding.