GameStop Stock Drops as ‘Roaring Kitty’ Returns and Company Announces Major Stock Sale

GameStop (GME) stock took a nosedive of more than 40% on Friday in a whirlwind of highly volatile trading, leaving investors on edge. The dramatic drop came as over half a million viewers eagerly tuned in to a much-anticipated YouTube livestream featuring “Roaring Kitty,” the alias of bullish retail investor Keith Gill.

This livestream marked Gill’s first appearance on the channel since he played a pivotal role in sparking a meme stock frenzy surrounding GameStop in 2021 with his upbeat videos and posts about the video game retailer. The event kicked off with a playful video clip of kittens followed by shots of Gill, who then appeared in front of a screenshot of a Yahoo Finance stock page for GameStop.

During the stream, Gill shared his thoughts on the company’s management, particularly highlighting Ryan Cohen and his team. He expressed optimism about their ability to turn things around, cautioning viewers that his remarks were not to be taken as financial advice.

The stock faced multiple trading halts throughout the day due to the extreme volatility. Prior to the YouTube stream, GameStop had already been on a downward trajectory following disappointing quarterly results and a stock sale announcement. The company reported an adjusted loss of $0.12 per share for the first quarter, missing analyst estimates, and net sales dropped 29% to $882 million.

Despite the recent rollercoaster ride for GameStop shares, Gill’s reemergence on social media has reignited interest in the stock, prompting calls for investigations into his trading activities. The saga continues to unfold as investors brace for further developments in this high-stakes market drama.