GameStop Corp. (NYSE: GME) is back in the spotlight as one of its most influential champions, Keith Gill, aka “Roaring Kitty,” resurfaces after a three-year hiatus. The video game retailer’s stock has surged, and investors are paying close attention. Let’s dive into the details:
Roaring Kitty, whose real name is Keith Gill, is a former Massachusetts Mutual Life Insurance salesman. In 2021, Keith Gill became famous on Reddit as "DeepF----Value". His posts on the Internet triggered a buying frenzy around GameStop, sending its stock price to an all-time high.
Retail investors rallied around GameStop, targeting short sellers and hedge funds. In early 2021, the stock rose from $3 to more than $120.
Hedge fund Melvin Capital suffered a significant loss. It had been heavily shorting GameStop. To stabilize Melvin's finances, Citadel and Point72 stepped up with nearly $3 billion.
Recently, the stock has begun to rise and Gill's interest has been rekindled with such a large number of short positions in the name. So far in May, GameStop is up 57% and closed Friday at $17.46.
· Net Sales: $1.79 billion (compared to $2.23 billion in Q4’22).
· SG&A Expenses: $359.2 million (20.0% of net sales).
· Net Income: $63.1 million.
· Cash and Marketable Securities: $1.20 billion.
· Long-Term Debt: Remains limited to a low-interest, unsecured term loan associated with the French government’s COVID-19 response.
· Net Sales: $5.27 billion (compared to $5.93 billion in 2022).
· SG&A Expenses: $1.32 billion (25.1% of net sales).
· Net Income: $6.7 million.
· Adjusted EBITDA: $64.7 million.
GameStop's stock shot up by 57% in May, reviving interest in the company. However, the company is facing challenges in its core activities. Recent financial statements show that, due to increasing competition in the eCommerce industry, revenue and cost-cutting measures have decreased.
