Online investor Keith Gill (aka Roaring Kitty), known for GameStop’s ($GME) financial success, made a dramatic return last week after years of silence.
Gill’s social media posts caused $GME’s price to rise, only to fall during his highly anticipated YouTube livestream on Friday, June 7.
On June 2, Gill sparked a fervor by unveiling on Reddit that he had purchased $115.7M worth of $GME shares. Four days later, he posted another announcement about making more than $382M in profit, bringing the total value of his investments to over $500M.
At the same time, $GME’s price spiked by 106%, with numerous mainstream media sources (such as Reuters and CNBC) attributing this price rise to Gill without sufficient evidence.
Following $GME’s sharp increase and the online buzz surrounding the investor, more than 2.4M people viewed Gill’s first YouTube livestream in three years. Contrary to what many expected, Gill’s video did not cause $GME’s price to surge.
Gill’s YouTube Livestream and Implications
Some believed the YouTube livestream could turn Gill into a billionaire as $GME is expected to reach $69 a share.
The Roaring Kitty/GameStop saga is one of the most fascinating financial stories in years. It’s absolutely nuts that Roaring Kitty, a random guy making stock tip videos on YouTube, could become a billionaire due to a meme stock. The notion that he’ll be streaming live as…
— positivity moon (@arrtnem) June 7, 2024
However, $GME’s price has sunk by around 30% over the past week. Its value peaked at $46.85 ahead of the YouTube video and has since dwindled by nearly 40% to $28.22.
Gill did not say or do anything noteworthy other than advocate for GameStop and show his trading position live, which was down $200M due to GameStop’s planned 75M share sale.
The sale aligns with the video retailer’s ‘Open Market Sale Agreement’ with Jefferies on May 17, 2024. The agreement allows GameStop to sell stock shares with Jefferies as a sales intermediary, in addition to the 45M shares the investment bank acquired for roughly $933.4M.
Other Facets of Roaring Kitty’s Live Stream
Despite the 75M share sale and $GME’s dwindling price, Gill drew attention to GameStop’s rising stock market value during his live stream.
He spotlighted a similar trend from ‘2021’s meme stock frenzy,’ when the share price hit $400+. Today, it surpassed those volume levels – if buying pressure continues, it’s likely the price will again experience volatility as it did then.
Additionally, he discussed how ‘talks surrounding GameStop’s transformation phase’ are essential, mentioning Ryan Cohen (CEO) and his crew and whether or not they can transform the business for the better.
The investor ultimately believes Cohen has the ability to reshape the company, stating he ‘has a good head on his shoulders,’ and that ‘many investors want it to work out.’
Additionally, he talked about his $GME positions and how mainstream media headlines say E-Trade is considering removing him from the platform.
Yet, Gill still has E-Trade access. At least he did on Friday, when he showed his daily gains were down around $236M with a smile on his face.
‘But, I get a feeling, and when I have a feeling, I act on it,’ he added lightheartedly while continuing to say his investments are usually beneficial long-term rather than short-term.’
In Conclusion
If Gill sold his stock before the stream, he would have gained around $500M.
Despite losing $200M due to GameStop’s planned sale of $75M shares, Gill showed a sense of enthusiasm and joy similar to his earlier online presence in Friday’s YouTube video.
He also expressed his faith in GameStop and the team’s ability to steer the company to greater heights despite the stock’s ‘short-term’ implications.
Considering Gill’s livestream did not result in a price surge as anticipated, some view his social media activity as a form of trolling.
Roaring Kitty is trolling the world right now. Am i gonna do it… am i not… this is so wild. Hands down the most entertaining thing you could possibly watch right now. I’m just glad i’m here for it. pic.twitter.com/pWqkIjdBVl
— Sad Hawkins (@hawkins_sad) June 7, 2024
Still, there’s no reason not to take him at his word about his trust in Cohen and his team’s ability to transform the business.
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