GameStop stock tanks ahead of 'Roaring Kitty' livestream on earnings miss, stock sale plan
What were the key points discussed by Keith Gill during his YouTube livestream?
During his YouTube livestream, Keith Gill, also known as the "Roaring Kitty," discussed his bullish stance on GameStop and his confidence in the company's management, particularly CEO Ryan Cohen. He emphasized that his opinions on GameStop were based on publicly available information and that he was not providing financial advice. Gill also confirmed that the screenshots of GameStop holdings posted on social media were his and stated that he was not working with hedge funds. The livestream attracted over half a million viewers, and GameStop's stock experienced high volatility during this time.
What specific events caused GameStop stock to plunge more than 40%?
The GameStop stock plunged more than 40% due to a combination of events. Firstly, the company announced quarterly results that missed analyst estimates, which included an adjusted loss of $0.12 per share and net sales dropping 29% to $882 million. Additionally, GameStop filed to sell up to 75 million additional shares, which followed the sale of 45 million shares last month. These events occurred in the context of highly volatile trading and the reappearance of "Roaring Kitty," Keith Gill, who held a YouTube livestream, where he discussed his positions and thoughts on the company's management1.
Who is "Roaring Kitty" and how has he influenced GameStop's stock in the past?
"Roaring Kitty" is an alias used by Keith Patrick Gill, a retail investor who gained prominence in January 2021 when he set off a surge in GameStop's stock2. Gill became popular after creating the Roaring Kitty YouTube channel and the "DeepF***ingValue" account on Reddit. He is from Brockton, Massachusetts, and before becoming Roaring Kitty, he worked at a subsidiary of MassMutual as the director of education and wellness.
Gill's never-give-up personality helped him influence people to buy and hold GameStop during the short squeeze in January 2021. A short squeeze occurs when the price of a stock moves sharply higher, prompting traders who bet its price would fall to buy it to avoid greater losses. This rush to buy results in more demand and a higher price for the stock.
Gill's influence on GameStop's stock price was seen again in June 2024, when he returned to social media after a hiatus. His posts and memes caused the stock to jump significantly, sparking discussions about potential market manipulation and raising concerns about his actions' legality. Despite these concerns, no obvious violations have been identified, and opinions on the matter vary among experts.