See what's happening to GameStop stock after the livestream of Roaring Kitty. Find out about the factors that led to a 40% decline and reaction from the market.
The trading world was on the edge of its seats as Keith Gill, the internet sensation known as ‘Roaring Kitty,’ went live for the first time since the historic meme stock frenzy. The aftermath, however, was not what many had expected. The sharp contrast to the spectacular rise three years earlier is evident in GameStops shares, which have fallen almost 40%.
Gill, who also goes by “Deep — Value” on Reddit, reiterated his support for GameStop’s reinvention under CEO Ryan Cohen's leadership. Despite his firm belief, the lack of new insight has disappointed investors. The video game retailer's stocks faced several trading halts during the stream due to market volatility.
The GameStop announcement of a sharp drop in first-quarter sales also added to the opposing view. The retailer's decision to issue up to 75 million shares exacerbated the situation, raising concerns about possible dilution of existing shares.
According to experts, the combination of the earnings report and Gill’s livestreams created a perfect storm that led to a massive sell-off. “Investors were expecting a revelation, a new chapter for GameStop. Instead, they got a reiteration of past glories,” said a leading financial analyst.
As the dust settles, the focus shifts to GameStop’s next move. Will the change in retail strategy regain investor confidence, or will the legacy of the meme stock continue to define the narrative? Only time will tell. For now, being a meme stock offers no guarantee of riding the wave whenever there is a social media post about a stock.
