Keith Gill Livestream Fizzles as GameStop Stock Price Plummets

Keith Gill, the online influencer known as “Roaring Kitty,” returned to the spotlight with a livestream on Friday, but it wasn’t enough to save GameStop’s stock from a steep decline.

Despite over 600,000 viewers tuning in, Gill’s jokes and disclaimers couldn’t reverse the nearly 40% drop after GameStop announced a $3 billion stock sale. Gill, a key figure in the 2021 meme-stock frenzy, even warned viewers of the risks involved and his investing style’s unsuitability for everyone.

The livestream came after a surge in GameStop’s stock price, nearly 50% higher the day before due to Gill’s announcement. This highlights the continued appetite for risky bets on struggling companies among some investors.

The livestream itself caused significant volatility, with the stock price halted multiple times and trading exceeding $10 billion worth of shares, the most on Wall Street that day (excluding giants Nvidia and Apple).

Despite the stock’s decline, Gill expressed confidence in GameStop’s CEO, Ryan Cohen, praising his leadership and transformation efforts.

Online, opinions on the livestream were divided. Some fans appreciated Gill’s signature style, while others criticized the lack of a clear buy signal.

The company’s surprise share sale raised questions, with details on timing unavailable. The SEC declined to comment on potential reviews. Gill’s past involvement in the 2021 GameStop saga, which attracted regulatory scrutiny, also resurfaced.

Despite the recent drop, GameStop’s stock remains significantly higher than it was before Gill’s return, highlighting the growing power and influence of retail investors.

GameStop’s capital raise echoes a similar move by AMC, another meme stock darling, which used its stock surge to strengthen its finances.

Friday wasn’t just bad for GameStop. Other meme stocks like AMC and Koss also experienced significant price drops.

GameStop’s quarterly results revealed declining sales, reflecting the ongoing challenge of competing with online video game retailers.