Retail trading legend Keith Gill, known as Roaring Kitty, returned to his livestream on Friday after several years. GameStop (NYSE:GME) stock had already fallen 25% that morning following a rushed Q1 earnings report and a 75 million share offering. During Gill’s appearance, shares continued to drop, ending 40% lower for the day.
The Solana-based meme token GME stock doubled in price before falling 50% on Friday, but still tripled for the week. Keith Gill’s return to social media caused a frenzy for GameStop and memecoins. Gill disclosed on Reddit that his stock and options were valued at $586 million.
Declining Q1 Numbers
Declining 28.7% in net sales for Q1, GME’s sales went from $1.24 billion down to $882 million. Net loss also reached $32.3 million, though it was better than last year’s $50.5 million loss. After its weak financial report, the stock feel to $31.63.
The fluctuation occurred as meme stock trader Keith Gill, aka “Roaring Kitty,” posted about GameStop, driving prices higher.
Gill was also the one who boosted GME during the pandemic. The livestream on YouTube was his first appearance after four years, reaching 640,000 viewers. GME stock fell to $31 per share while the livestream happened.
75 Million Shares Sold
Recently, GameStop made a roar by announcing a sale of 75 million shares. After selling 45 million shares in May, the company said these sales will be used for acquisitions, investments, and other corporate purposes.
With cash reserves nearing $2 billion, boosted by a recent $933.4 million share sale, another 75 million shares could add $2.6 billion, enhancing the company’s financial flexibility.
GME Stock is Not Worth It
Despite a significant price surge, trading at $31.57, up 83% year-to-date, GME’s volatile performance led to missed EPS projections.
The company posted a marginal profit of $6.7 million last fiscal year, with 22.34% of its shares shorted, signaling skepticism. Despite recent optimism, GameStop’s meme stock status and weak financials warrant a strong sell recommendation.
On the date of publication, Chris MacDonald did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.