'No Clear Deception:' Chamath Palihapitiya Doesn't Think Roaring Kitty Rigged GameStop Stock As SEC Rules
What actions did Keith Gill, also known as Roaring Kitty, take that influenced the recent rally in GameStop Corp. stock prices?
Keith Gill, also known as Roaring Kitty, influenced the recent rally in GameStop Corp. stock prices through a series of actions on social media. In mid-May, Gill posted on social media for the first time in about three years. He then stirred excitement by posting a screengrab of his trading account in the r/SuperStonk Reddit forum, revealing a large GameStop stake, comprising stocks and call options. These actions created volatility in the shares of the videogame retailer and sparked a renewed meme rally. Gill's countdown for a YouTube livestream also sent the stock spiking again before GameStop released its first-quarter earnings report ahead of schedule and announced a common stock offering, which caused the stock to plunge. Despite the stock fluctuations, Gill continued to hold 5 million shares and 120,000 June 21 call options with a strike price of $20.
How did GameStop Corp.'s stock respond immediately after the company's early earnings release and the announcement of a common stock offering?
GameStop Corp.'s stock responded negatively immediately after the company's early earnings release and the announcement of a common stock offering. The stock plunged after the release and ended Friday’s session down $39.38 at $28.22, according to Benzinga Pro data. This drop in stock price indicates that investors were not impressed by the company's financial performance and the decision to issue a common stock offering.
How did the stock price of GameStop Corp. fluctuate following Keith Gill's posts and actions?
The stock price of GameStop Corp. experienced significant fluctuations following Keith Gill's posts and actions. From $17.46 ahead of Gill's first post since early 2021, GameStop rose to a high of $64.82 on May 14 before losing most of its gains. The stock rally resumed last week and it rallied to an intraday high of $40 on Monday before ending the session at $28. Gill's countdown for a YouTube livestream, scheduled for mid-day on Friday, sent the stock spiking again and it climbed to a high of $48 in early trading on Friday. However, the stock plunged after the company released its first-quarter earnings report ahead of schedule and also announced a common stock offering. GameStop ended Friday’s session down $39.38 at $28.22. In premarket trading, the stock was up 5.14%.