By Steven Schwartz
Keith Gill, aka 'Roaring Kitty,' is more than an investor - he's an influencer and content creator
Roaring Kitty is the definitive example of how content creators have a new level of power in the economy.
Keith Gill, the trader known as "Roaring Kitty" who started the GameStop (GME) meme-stock craze three years ago, returned to YouTube several weeks ago to urge his followers to trust that GameStop can turn things around despite a rough earnings report. Gill's devotees so far haven't had the same success with GameStop this time around, but that doesn't mean a thing. Roaring Kitty's reappearance is about so much more than just one stock.
Gill is a pioneer, whether he knows it or not. Wall Street thought he was a villain, or worse, an idiot, but devoted followers saw him as a folk hero. Roaring Kitty and GameStop was the financial story of 2021; his return is a totem of the truth about our new economic reality, a reality many companies still struggle to acknowledge.
Creators and their followers, not businesses, are shaping consumer life.
Gill is an investor, but more importantly, he's an influencer and content creator. We are all living in the creator economy. Creators and their followers, not businesses, are shaping consumer life.
Gill is reading from a familiar playbook. His tactics and goals this month aren't so different from those of his first foray into retail trading. Gill isn't using the internet; he's of the internet.
When Gill started sharing content in late 2020, his tweets and livestreams reached tens of thousands of retail investors who looked to him for inspiration and direction. Now, he's doing it again. When he tweets an Uno reverse card, the market moves.
Gill initially returned to social-media channels in May with a series of tweets that had no words - just clips that he put together from various media from the past 50 years. GameStop shares spiked.
The world is reacting to Gill exactly as you'd expect. People are calling him and his followers "stupid." Headlines have been quick to label this as another passing joke that will come and go - "the party" will be over soon, they say.
But whether Wall Street wants to acknowledge it or not, Gill and his actions have real, far-reaching implications for the road ahead. People who are asking if this can continue are missing the point- the state of play has already changed, and something new is here to stay.
A new marketplace reality
People credited Roaring Kitty's initial success to a range of trends: pent-up pandemic energy; long-simmering Wall Street resentment; a fluke. But Gill's return reveals the most important factor: Him.
Roaring Kitty is the definitive example of how content creators have a new level of power in the economy. When a trusted voice speaks, followers can make or break a stock, an event or a company. Today, the creator economy is much more than models selling face cream on Instagram. Everything in consumer decision-making - from what you buy, to what you do, to how you invest - is driven by content creators. The most successful -the ones finding an audience and making money - aren't the ones shilling products for brands. They're building proper online businesses around the relationships they've formed.
If you build it, they will come
This concept isn't new. People have always made decisions based on what others around them suggest. What's different now is the number of people making suggestions and the platforms they have for doing so.
With 5.35 billion people online today, the internet is bigger than ever. Meanwhile, new technologies are leveling the playing field for users. Technologies like crypto, apps like Robinhood, and platforms like Discord are all connecting and enabling users to advance their interests outside the confines of old institutions. This is the democratization of the internet economy. People are learning, sharing, and simply doing more - and looking to creators like Roaring Kitty to guide them.
It's also important to note that Gill's fans don't just watch his livestream. They invest in GameStop and other stocks. This is active influence in action. Creators are teachers, and their students go out and inspire followings of their own.
The growing number of Roaring Kitty disciples proves that the creator economy is already here. Content creators and entrepreneurs are building brands that leverage direct connections with their followers. This shift isn't limited to finance, either. The disruptive power of Roaring Kitty has implications for all industries. People have more power online than ever, offering a huge business opportunity to anyone who can ignore the headlines, get out of their own way and recognize its value.
Steven Schwartz is CEO and co-founder of digital marketplace Whop.
More: GameStop's $2.1 billion stock sale taxes its shareholders and hurts the economy
Plus: Why Roaring Kitty is a GameStop 'true believer'
-Steven Schwartz
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06-29-24 1120ET
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