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GameStop Shares Continued Decline Amidst Keith Gill’s Return
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GameStop shares experienced a second consecutive session of significant losses on Monday, extending a downward trend triggered by the return of stock influencer Keith Gill, also known as “Roaring Kitty,” to YouTube last week.
Despite Gill’s efforts to reignite investor enthusiasm for the struggling retailer, GameStop’s stock failed to rebound.
Keith Gill’s Livestream and GameStop Share Sale:
Gill held his first livestream in three years on Friday, coinciding with GameStop’s announcement of its second share sale within days.
Despite the livestream attracting over 2.4 million views on YouTube, GameStop shares continued to plummet, declining by about 12% on Monday after a significant drop of nearly 40% on Friday following the company’s report of a decline in quarterly sales.
GameStop’s Strategic Moves:
GameStop’s decision to sell up to 75 million shares, following a recent sale that generated $933 million from the sale of 45 million shares, added to the downward pressure on its stock.
Gill himself acquired 5 million shares of GameStop at an average price of $21.274, along with 120,000 GameStop June 21 call options at a strike price of $20. However, Reuters could not verify his holdings’ exact size and value.
Market Response and Other Meme Stocks:
The broader market response saw other so-called meme stocks also giving back recent gains on Monday. AMC Entertainment and headphone seller Koss experienced losses of nearly 7% and about 4%, respectively.
GameStop’s stock nearly tripled in value over two days through May 14 after Gill’s account resurfaced on X.com (formerly called Twitter). However, since then, the stock has relinquished most of those gains, although it remains up about 37% year-to-date in 2024.
Continued Challenges for GameStop:
Despite ongoing efforts, GameStop continues to face significant challenges as it struggles to adapt to the changing retail landscape, with customers increasingly favoring online purchases.
The company’s latest quarter marked another period of losses, reflecting the ongoing difficulties in its business model.
