GameStop (GME) stock fell over 40% Friday in chaotic trading after the company filed to sell millions of shares and more than half a million viewers came in for a much-anticipated YouTube live stream from “Roaring Kitty”, a short name used by optimistic retail investor Keith Gill.
The event was Gill’s first live appearance on the channel since he sparked a meme stock spike in 2021 with bullish films and remarks about the video game retailer.
The feed began with a short clip of kittens playing, combined with pictures of Gill. He then reappeared in front of a screenshot of GameStop’s share page on Yahoo Finance.
“It becomes a bet on the management. In particular, of course, Ryan, f***ng Cohen. Ryan Cohen and his crew. That’s what folks should be focused on,” Gill said.
He added, “I see enough where I believe this guy may be able to do it.” He noted that “nothing on this stream is advice.”
Additionally, Gill claimed ownership of the GameStop holdings screenshots that were shared on social media earlier this week.
“The accounts showing my positions are mine. These are my positions. I’m not working with anybody else. I’m not working with hedge funds,” he said.
On Friday, there were over twelve stops in the stock during extremely unpredictable trading. Before the YouTube broadcast, it had been falling following quarterly data that revealed a stock sale and fell short of analyst expectations.
In contrast to projections of a loss of $0.09 per share, GameStop reported an adjusted loss of $0.12 per share for the first quarter. Compared to analyst projections of $995.5 million, net sales decreased 29% to $882 million. The quarterly results were anticipated by Wall Street later this month.
The company also submitted a request to sell an extra 75 million shares. GameStop sold 45 million shares last month, bringing in about $930 million in revenue. Before the news earlier in the day, the stock had increased by 47% after “Roaring Kitty” set the webcast.
After the market closed on Thursday, “DeepF***ingValue,” a Reddit user who is also connected to Gill, posted an image purportedly showing the user’s portfolio increasing to $586 million, including investments in shares of GameStop and unexercised options.
GameStop Trading Under Investigation
GameStop shares have been on a rollercoaster over the last month as Gill resurfaced on social media, prompting some to ask for an investigation. In mid-May, “Roaring Kitty” posted on X, formerly known as Twitter, for the first time since 2021, leading to a 180% stock rally over two days.
“The fact that this individual purchased short-dated call options on GameStop and then tweeted for the first time since ever — knowing full well that these Reddit WallStreetBets folks were going to push the stock price up… it is shady,” Loop Capital Markets managing director Anthony Chukumba told on Thursday afternoon.
Massachusetts’ top securities regulator acknowledged to Reuters that it has begun an investigation into “Roaring Kitty’s” GameStop trades.
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Source
Yahoo Finance
