Close this search box.
Blog » Gaming » GameStop stocks take a hammering despite pandemic-era personality’s praise

GameStop stocks take a hammering despite pandemic-era personality’s praise

Plummeting value

GameStop, the videogame and console retailer, witnessed a huge plunge in stock price despite a vocal pandemic-era viral supporter attempting to rally investors.

The person known as “Roaring Kitty” or Keith Gill took to YouTube to stream about the stock, commonly known as a “meme stock.” This type of stock sees viral popularity due to heightened social sentiment or a cultural event.

This person was responsible for the trading frenzy during the pandemic for GameStop stock but couldn’t repeat the feat after live streaming the company’s most recent financial earnings.


GameStop Stock on the slide

Despite Roaring Kitty/Gill’s attempts to say otherwise to an audience of 600,000 viewers, the share price took a 40% hit and ended a torrid week of trading.

As we reported, GameStop’s earnings failed to match the previous year’s after its annual report included uninspiring numbers. The retailer recorded a shortfall of $432 million in net sales compared to the previous year of trading.

In that rough April reporting period, the company had lost half a million compared to the previous year, CEO Nir Patel walked, and shares dipped by 17%.

When the company was at its lowest in some time, Gill reappeared from the blue in May —posting a cryptic social media post that galvanized a 110% surge to $38.20.

Spectators and experts were skeptical at that time. “It’s unlikely you’re going to see a repeat of meme stock mania for any sustained period of time because it was a point in time when you had a bunch of people stuck at home with free money, and that’s no longer the case,” Thomas Hayes, chairman at Great Hill Capital LLC said to Reuters.

Haynes was partly right, as GameStop looked to be getting back out of the rut, but this could have all been a ply by Gill. His return sparked a surge, but one that could not be maintained, as the events this week have proven.

It has long been rumored that he has millions in GameStop stock that could be worth around 100 million. The New York Stock Exchange had to pause trading on GameStop stock 15 times in one day, so there could be more to the story that Gill isn’t sharing, but time will tell if the fate of GameStop hinges on the whims of a social influencer.

Image: Ideogram.

About Due’s Editorial Process

We uphold a strict editorial policy that focuses on factual accuracy, relevance, and impartiality. Our content, created by leading finance and industry experts, is reviewed by a team of seasoned editors to ensure compliance with the highest standards in reporting and publishing.

Financial News Writer and Editor
Brian-Damien Morgan, an accomplished journalist and features writer, boasts a rich career that has evolved across various media platforms. With extensive experience in the print sector of several UK newspapers, Brian transitioned seamlessly into the realm of digital broadcasting and specialized financial content creation. Brian now focuses on finance, technology, legal matters, and the wide spectrum of money-related topics.

About Due

Due makes it easier to retire on your terms. We give you a realistic view on exactly where you’re at financially so when you retire you know how much money you’ll get each month. Get started today.


Top Trending Posts

Due Fact-Checking Standards and Processes

To ensure we’re putting out the highest content standards, we sought out the help of certified financial experts and accredited individuals to verify our advice. We also rely on them for the most up to date information and data to make sure our in-depth research has the facts right, for today… Not yesterday. Our financial expert review board allows our readers to not only trust the information they are reading but to act on it as well. Most of our authors are CFP (Certified Financial Planners) or CRPC (Chartered Retirement Planning Counselor) certified and all have college degrees. Learn more about annuities, retirement advice and take the correct steps towards financial freedom and knowing exactly where you stand today. Learn everything about our top-notch financial expert reviews below… Learn More