• GameStop shares surged 118% in two days, sparked by the return of Keith Gill, known as "Roaring Kitty".
• The company experienced a similar surge in January 2021, when its stock price skyrocketed over 2600%.

The dramatic rise of GameStop Corp (NYSE:GME) shares, which jumped 118% in just two days, has caught the attention of many again. This surge happened alongside the return of Keith Gill, also known as "Roaring Kitty."

His cryptic social media post seemed to spark excitement among retail investors. The meme stock phenomenon, like GameStop, continues to challenge traditional financial wisdom and the predictions of seasoned Wall Street analysts.

This isn't the first time GameStop's stock has seen such wild swings. In January 2021, the company's shares soared by over 2600% in a matter of weeks. This unprecedented rise was driven mainly by a huge wave of trades from everyday investors using platforms like Robinhood, who coordinated schemes to buy stocks through social media and forums like WallStreetBets on Reddit.

However, the stock's soaring highs were quickly followed by a steep decline, dropping nearly 90% from its peak, highlighting the high-risk nature of trading in such volatile securities.

This rollercoaster of value led to significant gains for some but also substantial losses for others, especially those who bought at the stock's peak.

Recently, the stock made a sharp recovery from Friday after a period of stagnation. It experienced a remarkable rise at the start of this week. On Monday, the shares closed up 75%.

Tuesday started strong with a 113% gain from the previous day but closed the day up only 60% as early gains were cut by heavy selling pressure once the market opened.

Given the history, GameStop shares might exceed their all-time high of $120, but this comes with the potential for both significant gains and losses due to the stock's volatility. Currently, the $50 round number is a crucial resistance level. If the stock can move and stay above this resistance, there might be a push towards surpassing previous record highs.

After the closing bell on Tuesday, May 14, the stock closed at $48.75, trading up by 60.10%.

This article is from an unpaid external contributor. It does not represent Benzinga's reporting and has not been edited for content or accuracy.