GameStop, the video game retailer, experienced a significant tumble of 40% as Keith Gill, famously known as ‘Roaring Kitty,’ shared his insights during a recent livestream session. Gill, who rose to prominence during the meme stock craze, expressed his continued belief in GameStop’s potential under CEO Ryan Cohen’s leadership.
During the livestream, Gill reiterated his investment thesis for GameStop, emphasizing the company’s ongoing reinvention efforts. Despite the anticipation surrounding his appearance, Gill provided limited new information regarding his substantial stake in the company. He clarified that he did not have any institutional support and that the GameStop positions he disclosed were his sole investments.
As Gill’s livestream unfolded, GameStop’s shares faced multiple halts, ultimately plummeting nearly 40% in response to the company’s earlier announcement of a significant sales decline in the first quarter and plans for additional stock offerings.
One notable aspect highlighted during the livestream was Gill’s call options on GameStop. With 120,000 call options at a strike price of $20 set to expire in June, Gill potentially stands to exercise options worth $240 million if the stock price remains favorable.
Following approximately 50 minutes of streaming, Roaring Kitty bid farewell to viewers, signaling the end of the session. The conclusion of the livestream coincided with GameStop’s shares experiencing their most substantial one-day loss since February 4, 2021, marking a challenging trading day for the company.
Furthermore, the impact of Gill’s livestream extended beyond GameStop, as other meme stocks, including AMC Entertainment, also witnessed declines during the session. AMC’s shares dropped around 14% amid the livestream, contributing to a year-to-date decline of nearly 19% for the company.
Despite the intense market scrutiny, Gill maintained a candid approach during the livestream, revealing that he did not have legal representation present during the session, adding a touch of authenticity to the event.
