GameStop shares drop despite ‘Roaring Kitty’ endorsement of company’s progress

The meme stock saga of GameStop took another dramatic turn on Friday as Roaring Kitty, also known as Keith Gill, took to YouTube to rally his followers and express his continued belief in the struggling video game retailer’s potential for a turnaround.

In a live stream that drew over 600,000 views, Gill shared a screenshot of his E-Trade account, showing that he still holds a significant investment in GameStop. However, his remarks were unable to prevent the stock from plunging almost 40%, highlighting the unpredictable nature of meme stocks.

Despite GameStop’s quarterly results showing some improvement in narrowing losses, the company’s revenue fell as sales weakened across various categories. GameStop also filed paperwork to sell up to 75 million shares of stock, further adding to the uncertainty surrounding the company’s future.

During the live stream, Gill appeared rambling and unfocused at times, but reiterated his belief in GameStop CEO Ryan Cohen’s approach to transitioning the company to a successful online gaming entity. However, he cautioned that there are no guarantees in the volatile world of meme stocks.

As GameStop shares continued to decline during the live stream, trading was paused multiple times due to high volatility. Gill also addressed speculation about his backing from hedge funds or institutions, asserting that he was not working with any large investors.

The day ended with GameStop shares closing down nearly 40% at $28.22, reflecting the rollercoaster ride that the company has been on in 2021. Gill’s influence on the stock’s price and the ongoing speculation surrounding GameStop’s future have kept investors and followers on edge, unsure of what the next chapter in this meme stock saga will bring.