GameStop shares volatile after earnings and ahead of ‘Roaring Kitty’ live stream
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GameStop shares were volatile on Friday morning after the company reported results and ahead of a YouTube livestream planned by meme stock influencer Keith Gill, also known as "Roaring Kitty."
The video retailer reported a net loss of $32.2 million compared to a loss of $50.5 million in the year-ago period. Sales fell 28% to $881 million, down from $1.2 billion. The company also plans to sell up to another 75,000,000 shares on top of the 45,000,000 already sold.
Shares fell following a 47% jump, the largest percent increase since May 14, 2024, when it rose 60.1% and capping a rally that spanned five of the past six days.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| GME | GAMESTOP CORP. | 27.83 | -0.60 | -2.11% |
Investors will be able to tune into the "Roaring Kitty" YouTube channel on Friday at noon Eastern. This is the first time Gill has broadcast in about three years.
The struggling video game seller's shares have seen significant volatility since May when Gill returned to social media platform X, formerly Twitter, after a three-year hiatus.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| GME | GAMESTOP CORP. | 27.83 | -0.60 | -2.11% |
In recent weeks, the meme stock spiked to an all-time high closing price of $48.75, according to data from Dow Jones. Those gains were followed by the stock price plunging in the following days to $18.32 on May 23.
GAMESTOP SHARES SURGE AFTER 'ROARING KITTY' POST
Meme stock influencer Keith Gill, aka "Roaring Kitty," teased a livestream event for Friday that has prompted a surge in GameStop stock. (Michael M. Santiago / File / Getty Images)
GameStop's mid-May rally was curbed after the video game retailer offered an update on its business and announced plans to sell as many as 45 million shares of common stock.
The company said that its first quarter net sales will be in a range of $872 million to $892 million, with a net loss in a range of $27 million to $37 million.
GameStop said it "intends to use the net proceeds from the Offering, if any, for general corporate purposes, which may include acquisitions and investments in accordance with our investment policy."
GAMESTOP, AMC SHORT SELLERS DOUBLE DOWN EVEN WITH STOCK SWINGS
Video game retailer GameStop recently announced a new share sale and a projected quarterly loss. (Bing Guan / Bloomberg / File / Getty Images)
GameStop shares surged more than 20% higher on Monday after Gill's profile on Reddit returned and displayed a post showing a $116 million bet on the company's stock after a three-year gap.
He also posted a shot of a card from the card game Uno, known to signal a reversal.
Gill was a key figure in the 2021 market rally around GameStop and other so-called meme stocks that was fueled by individual investors on Reddit's Wallstreetbets forum.
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FOX Business' Aislinn Murphy and Reuters contributed to this report.