GameStop Shares Plummet as Keith Gill’s YouTube Livestream Fails to Reignite Investor Excitement

GameStop, the struggling shopping mall retailer, saw its shares plummet for a second consecutive session on Monday. The decline came after Keith Gill, also known as “Roaring Kitty,” made his first livestream on YouTube in three years. Gill was a key figure behind the eye-popping rally in GameStop earlier this year.

During his livestream, Gill discussed GameStop and joked about memes. However, despite his return to YouTube, investors failed to show renewed enthusiasm for the company. The livestream gained significant attention, with over 2.4 million views on YouTube by Monday.

Following the livestream, GameStop shares continued to fall on Monday, experiencing a 15% decline to $24.06. This came after a dive of nearly 40% on Friday when the company reported a drop in quarterly sales. On the same day, GameStop announced its plan to sell up to 75 million shares, shortly after selling 45 million shares and making $933 million.

Gill himself acquired 5 million shares of GameStop at an average price of $21.274 and purchased 120,000 GameStop June 21 call options at a strike price of $20. The value of his holdings could not be independently verified by Reuters. The options contracts were trading at $6.40 per contract on Monday afternoon.

The decline in GameStop shares was not isolated, as other “meme stocks” also gave back recent gains. AMC Entertainment saw a nearly 7% loss, while headphone seller Koss experienced a 4% decline.

GameStop’s shares had nearly tripled in value over two days in May after an account associated with Gill reemerged on X.com (formerly known as Twitter). However, most of those gains have been lost since then. Overall, GameStop shares remain up about 37% in 2024.

The struggles faced by GameStop are not new. The company has been losing money for years as customers shift to online purchases. Despite attempts to adapt, the latest quarter showed no improvement in its financial situation.

In conclusion, GameStop’s shares took a hit after Keith Gill’s return to YouTube failed to reignite investor interest. The decline in GameStop shares was accompanied by losses in other meme stocks as well. The company continues to face challenges due to the shift towards online purchases, resulting in ongoing financial losses.