GameStop Stock Plummets 41% Amid Roaring Kitty Livestream
GameStop’s shares tumbled 41% on Friday, interspersed with many trading halts and a popular livestream by Keith Gill, ‘ Roaring Kitty.’ This drop came after GameStop released its poor quarterly earnings and plans to sell many shares. This fell markedly from the 47% rise posted on Thursday as investors expected Gill’s reappearance in the public domain.
Roaring Kitty Confirms GameStop Holdings Online
The latest YouTube video of Keith Gill, which is his first video since the 2021 meme stock craze, received more than half a million viewers. The stream consisted of fun graphics and a more open conversation about the future of GameStop, with a strong focus on Ryan Cohen. Gill’s comments show that he still has confidence in Cohen and is willing to take the company to the next level.
But he stated that he did not mean what he said as financial advice. This session occurred after a period of inactivity from Gill, who had earlier pumped up a massive buying spree in GameStop’s stock through his positive remarks on various social media channels.
However, Gill confirmed that the GameStop shares displayed on social media were indeed his, stressing that he trades on his account. During the live stream, he stated, “The accounts which show my positions are mine. These are my positions. I am not working with anyone else. I am not working with hedge funds.” This revelation emerged when the company was still reeling from its most recent financial reporting.
GameStop Reports Sharp Quarterly Financial Loss
GameStop’s latest financial figures revealed a deeper-than-expected quarterly loss and a significant drop in sales, which likely contributed to the stock’s fall. The company reported an adjusted loss of $0.12 per share, missing the expected loss of $0.09 per share, while sales fell 41% to $882 million, well below the anticipated $995.5 million. The results were a blow to investors hoping for signs of a turnaround.
Following these results, MockGameStop announced plans to issue up to 75 million additional shares. This move follows last month’s sale of 45 million shares, which raised about $930 million. This decision is a strategic attempt to capitalize on the stock’s volatile price movements and shore up the company’s finances.
The return of “Roaring Kitty” to the spotlight and the ensuing stock fluctuations have not gone unnoticed by regulators. Earlier in the week, Massachusetts’ top securities regulator confirmed the initiation of a probe into Gill’s GameStop trades. This investigation highlights the ongoing scrutiny of trading activities that potentially leverage social media influence to affect stock prices.
Also Read: Litecoin Price Analysis: LTC Eyes $100 Breakout as Active Addresses and Transactions Surge
The post GameStop Stock Plummets 41% Amid Roaring Kitty Livestream appeared first on CoinGape.