(Reuters) – Stock influencer Keith Gill’s first livestream in three years did not generate enough investor interest to counteract GameStop’s nearly 40% stock drop following the announcement of a share sale to raise up to $3 billion.
During a livestream with over 600,000 viewers, Gill, also known as “Roaring Kitty” on YouTube, joked about memes and gave various disclaimers about investing in GameStop. He cautioned viewers about the risks of his aggressive investment style.
Despite GameStop’s stock rising nearly 50% the day before Gill’s livestream, shares ended at $28.22 on Friday, with trading halted several times due to high volatility. Investors traded $10 billion worth of GameStop shares, more than any other stock except Nvidia and Apple, according to LSEG data.
Gill expressed confidence in GameStop’s CEO, Ryan Cohen, and discussed the company’s efforts to cut costs and stabilize the business. He emphasized the importance of the company’s transformation.
After the livestream, Reddit user SteveRogers7 commented that Gill’s approach was consistent with his past behavior, which includes discussing fundamentals, sharing memes, and drinking while talking about stocks.
GameStop Files to Sell an Additional 75 Million Shares of $GME Stock
-GameStop has announced the sale of up to 75 million shares through an at-the-market offering.
-The company also reported its Q1 earnings, with revenue falling by 28.7% to $882 million.
-GME is up by over…
— InvestorPlace (@InvestorPlace) June 7, 2024
GameStop previously announced plans to sell up to 75 million shares but did not provide details on the timing. The U.S. Securities and Exchange Commission declined to comment on the share sale.
Gill’s support for GameStop in 2021 led to a significant stock rally, gaining him a dedicated following. However, after facing congressional and regulatory scrutiny, he disappeared from the public eye until recently. His return has caused GameStop shares to rise over 50% in recent weeks.
Retail traders are increasingly influencing the market, according to Don Montanaro, president of discount brokerage Firstrade, and need to be recognized by public companies.
Last month, GameStop raised more than $900 million by selling 45 million shares during a surge in meme stocks. AMC, another meme stock, also completed a $250 million share sale last month.
On Friday, shares of other meme stocks also declined, with AMC dropping 15% and headphone maker Koss falling 17%. GameStop’s quarterly results showed a decline in net sales as more customers purchase video games online instead of in stores.
