From Investing.com: 2024-06-07 08:10:52

GameStop reported a decline in sales and announced plans to sell 75 million shares, causing a nearly 10% drop in its stock before a livestream with meme stock influencer Keith Gill. The company also revealed a first-quarter net sales decrease due to competition from e-commerce.

Gill, known as “Roaring Kitty”, helped GameStop shares rally in 2021 before they plummeted. After a series of bullish memes, GameStop stock soared, but dropped when the company announced the share sale. Other meme stocks like AMC Entertainment and Koss also saw a decline after recent gains.

Analysts speculate the current meme stock phenomenon lacks the same retail investor fervor as in 2021. High-frequency institutional traders seem to be front-running retail efforts, rather than fostering a widespread bullish trend for meme stocks. Short interest in GameStop is at 19.87% of free float.

UBS Global Wealth Management’s Jason Draho notes the IPO market is quiet, M&A activity is mild, and meme stock activity is subdued compared to 2021. Although there are still dramatic one-day moves in the market, the speculative energy seems to have diminished.



Read more at Investing.com: GameStop spooks investors with share sale, results ahead of “Roaring Kitty” livestream By Reuters