Welcome to Extreme Investor Network, where we bring you the latest updates and insights on all things finance. Today, we’re diving into the recent rollercoaster ride of GameStop shares and the influence of stock influencer Keith Gill, also known as “Roaring Kitty.”
Shares of GameStop took a hit for the second consecutive session on Monday, continuing steep losses after Keith Gill’s return to YouTube failed to reignite investor interest in the struggling shopping mall retailer. Gill, who played a pivotal role in GameStop’s meteoric rise in 2021, held his first livestream in three years on Friday, coinciding with GameStop’s announcement of its second share sale in days.
Despite Gill’s humorous take on memes and multiple disclaimers during the livestream, GameStop shares plunged around 15% to $24.06 on Monday following a nearly 40% drop on Friday after the company reported a decline in quarterly sales. The announcement of GameStop’s plan to sell up to 75 million shares, on top of the recent sale of 45 million shares that netted $933 million, also added pressure to the stock.
Speaking of Gill, he revealed that he acquired 5 million shares of GameStop at an average price of $21.274, as well as 120,000 GameStop June 21 call options at a strike price of $20. While the exact value of his holdings could not be verified, the options contracts were trading at $6.40 a contract on Monday afternoon.
On the broader meme stock front, AMC Entertainment and Koss also experienced declines on Monday, with AMC losing nearly 7% and Koss down about 4%. GameStop shares had surged nearly threefold in just two days until May 14, following Gill’s return to X.com. However, most of those gains have since been wiped out, leaving the stock up around 37% in 2024.
The challenges faced by GameStop are no secret, with the company grappling with years of losses as consumers shift towards online shopping. Despite the setbacks, GameStop and the meme stock saga continue to capture the attention of investors and market watchers alike.
Stay tuned to Extreme Investor Network for more updates and insights on the dynamic world of finance. Subscribe to our newsletter to receive exclusive content and analysis straight to your inbox. Thank you for joining us on this financial journey!