Unity Software stock is gaining after Roaring Kitty’s cryptic social media post

Despite a lack of any real news, Unity Software (U+6.36%) stock went on a tear Thursday morning. It appears to be a result of the latest tweet from Keith Gill, an investor who also goes by “Roaring Kitty.”

Gill posted a short clip on X (META+1.77%), formerly known as Twitter, featuring comedian Dave Chappelle performing his famous impression of Rick James, referencing the late musician’s song “Unity” from the popular sketch show “Chappelle’s Show.” Some investors appear to have taken that as a clue to invest in Unity Software, which has watched its stock fall by more than 42% over the past 12 months.

The stock soared 17% in pre-market trading on Thursday. As of shortly after 2 p.m. ET, those gains have been largely shed, and the stock is up by almost 5%.

Such brief spikes in stock price are characteristic of so-called meme stocks: shares of companies that become wildly popular online and are traded feverishly by retail and individual investors, sending prices soaring regardless of the company’s actual operating results or prospects.

Whether sparking gains to Unity’s stock price was Gill’s intention is unclear. But it’s by far from the only time that one of his cryptic social media posts has driven major stock movements.

Earlier this year, Gill helped drive major boosts to Chewy (CHWY+0.39%) and Petco (WOOF+6.30%) stock after posting a cartoon photo of a dog on X on Thursday afternoon. Within minutes, shares of pet brands Chewy and Petco spiked, Quartz reported in June.

Chewy, the online pet supply company founded by current GameStop (GME-2.94%) CEO Ryan Cohen, surged roughly 30% in intraday trading following the post, while Petco notched a brief 12% spike. Those gains, as is typical with meme stocks, were later largely erased.

Gill gained national attention during the COVID-19 pandemic for his bullish analysis of GameStop on Reddit, where he goes by the username “DeepF—ingValue.” He drove the first short-squeeze of the video game retailer’s stock in early 2021, which saw its shares surge more than 1,000% in a matter of weeks.

In May, he kicked off a renewed meme stock frenzy around GameStop stock when he broke his three-year social media hiatus by posting on X. On Dec. 26, Gill shared an image of a wrapped Christmas present on X, sparking a volatile day of trading for Gamestop stock.

GameStop stock gained 2% in pre-market trading Thursday. A handful of memecoin cryptocurrencies based around the company, like GmeStop and GameStop Coin, have spiked.

Correction: This post has been updated to more clearly show that the clip shared by Keith Gill is of the comedian Dave Chapelle imitating Rick James, not of James himself.

—Rocio Fabbro contributed to this story