GameStop, the videogame retailer at the center of a meme stock frenzy, raised approximately $2.14 billion through an equity offering on June 12, 2024. The company intends to use the proceeds for general corporate purposes and potential acquisitions and investments (Reuters).
The announcement came after Roaring Kitty, a prominent meme stock influencer, held a livestream on June 10 where he joked about memes and discussed GameStop. The stock had previously fallen nearly 40% following the livestream due to bullish calls from Roaring Kitty (Reuters).
Roaring Kitty, whose real name is Keith Gill, had previously attempted to trigger a short squeeze in GameStop but was unsuccessful when the company issued new shares. This move caused the stock price to drop significantly and left Gill with substantial losses (Fortune).
GameStop's first-quarter results, released ahead of schedule on June 7, showed a 28.7% slide in revenues to $881.8 million compared to the previous year (Reuters). The company had also announced its intention to sell shares earlier that month amid a retail buying frenzy sparked by Roaring Kitty's return on social media (Reuters).
CEO Ryan Cohen held an 8.6% stake in GameStop as of June 10, down from 10.5% as of May 22 (Reuters). The company had previously raised another $933.4 million by selling shares in May (Reuters).
Roaring Kitty's influence on the stock market has been significant, with his bullish calls and social media presence attracting a flood of retail cash to the struggling bricks-and-mortar retailer (Fortune).
