GameStop, the video game retailer, experienced significant volatility in its stock price on June 7, 2024, as Keith Gill, also known as Roaring Kitty on social media platforms like X and YouTube and Deep-------Value on Reddit, announced his return to YouTube for a livestream. The announcement sent GameStop shares soaring before they plunged once again during the event.
Gill reiterated his belief in GameStop's potential under CEO Ryan Cohen, who was appointed last September. He emphasized that he holds the shares himself and does not have any institutional backing.
The company had previously announced plans to sell up to 75 million additional shares, which may have contributed to the stock's volatility during the day. GameStop had experienced declining sales prior to the meme stock craze and had posted seven straight quarterly losses before March 2023.
Despite these challenges, GameStop managed to turn its first profit in two years in March 2023 and generated over $933 million in fresh capital by selling a new batch of shares. As of February 2024, the company had 4,169 locations worldwide.
Gill's return to social media has also influenced gains in other downtrodden stocks like AMC Entertainment and BlackBerry. However, concerns about potential stock manipulation related to his GameStop activities have led some trading platforms like E*Trade to consider booting him from their services.
The livestream saw over half a million viewers tuning in, with Gill offering little new information beyond his previous investing thesis. Shares of GameStop were halted multiple times during the event due to the significant price movements.
It is important to note that while Gill's influence on social media has led to notable gains in certain stocks, it is crucial for investors to approach such situations with caution and consider all available information before making investment decisions.
