GameStop Corp. stock took a nosedive on Friday following the much-anticipated return of Keith Gill to YouTube. The video-game retailer also surprised investors by releasing earnings and announcing plans to sell up to 75 million additional shares earlier in the day.
Gill, also known as “Roaring Kitty,” appeared on a livestream where he reiterated his bullish views on GameStop stock and confirmed that the massive positions posted on his Reddit account are indeed his. The stream attracted over 600,000 viewers at one point and featured appearances from popular accounts like Dave Portnoy and WallStreetBets.
During the stream, GameStop shares were halted for volatility nine times as Gill discussed his faith in the company’s management team and its potential for growth. The event was a mix of the bizarre and the serious, with Gill wearing sunglasses, stickers on his face, and an unnecessary arm sling while discussing the stock and interacting with viewers.
The stream lasted about 50 minutes and saw over 40 million shares traded. GameStop’s stock price saw a significant decline following the stream, with trading volume reaching levels not seen since March 2021. The company’s decision to sell additional shares comes on the heels of lackluster first-quarter results and a previous stock sale last month.
Gill’s return to social media has reignited speculation and interest in GameStop stock, despite concerns over market manipulation. The SEC is expected to closely monitor the trading activity surrounding the stock in light of Gill’s influence. Overall, GameStop’s stock price remains disconnected from its business performance, leading to a mix of bullish speculation and skepticism among investors.