GameStop Falls 40% as Roaring Kitty Resumes Livestreams
GameStop’s stock (GME) plummeted by 40% following the return of the prominent trading personality, Roaring Kitty, also known as ‘Keith Gill’, to his livestreams. Gill, a central figure in the 2021 meme stock phenomenon, had been silent for nearly three years before reappearing, sparking intense market reactions.
The Roaring Kitty Phenomenon
Keith Gill, better known by his online monikers ‘Roaring Kitty’ and ‘DeepFuckingValue’ on Reddit, became a pivotal figure in the 2021 GameStop Short Squeeze. His detailed analysis and bullish stance on GameStop stock inspired a wave of retail investors to buy and hold the stock, leading to a massive short squeeze that caught many Hedge Funds off guard.
Gill’s influence was so profound that it brought him into the limelight, earning him a reputation as a champion of the retail investor.
Roaring Kitty’s Recent Livestream
On June 7, 2024, Roaring Kitty returned to live streaming, exciting his followers and the investment community.
The livestream began at 12:25 p.m. ET, drawing over 400,000 viewers, despite being scheduled for noon ET.
During his livestream, he shared his views on the market, including GameStop and other meme stocks. Instead of boosting the stock, GameStop’s shares dropped by 40% immediately after.
Gill emphasized that his investment in GameStop is solely his own and that he has no Institutional Support.
“Those are my positions. I’m not working with anybody else, with hedge funds. … I gotta hop on the stream and just remind people you know … I’m not an institutional investor,”
– Roaring Kitty
The sharp decline in GameStop’s stock price following Gill’s livestream underscores the volatile nature of meme stocks and the significant influence of key personalities within this space.
According to CNBC, this drop is a stark reminder that the meme stock phenomenon, while capable of creating dramatic market movements, is also fraught with risks and uncertainties.
Roaring Kitty’s Gamestop Positions
Roaring Kitty disclosed that the GameStop positions displayed in his screenshots were entirely his own investments.
His portfolio consists solely of Five Million Common Shares and 120,000 Call Options, which are his only investments.
Market Impacts and Reactions
Last month, GameStop announced it generated over $900 million by selling 45 million shares, following a surge in meme stocks driven by investor enthusiasm.
On Friday, GameStop released its quarterly results four days earlier than planned, causing the stock to surge by 50% before Gill announced his upcoming livestream.
GameStop shares dropped sharply after the video game retailer announced a share sale aiming to raise up to $3 billion. Meanwhile, during his YouTube livestream, Gill advised nearly 600,000 viewers to trust CEO Ryan Cohen.
GameStop closed at $28.22 after experiencing multiple trading halts both before and during the highly anticipated livestream.
In Friday’s report, GameStop announced net sales of $881.8 million and a net loss of $32.3 million for the first quarter. The net sales figure marked a 28.7% decrease compared to the previous year, while the net loss showed an improvement.
Overall Scenario
The 40% drop in GameStop’s stock after Roaring Kitty’s livestream is a crucial lesson for investors. It shows the need for cautious optimism and careful research, especially in markets influenced by social media. While figures like Roaring Kitty can impact the market, long-term investments should be based on Solid Financial Analysis and a good understanding of market basics.
For anyone following the meme stock saga and the retail investor movement, it’s essential to stay updated with Trustworthy Sources. An investor can Stay Cautioned about the alarming phenomenon of the meme industry.
Author: Mr.OxBull
Article Published: June 08, 2024.
