Reddit user Keith Gill is credited with inspiring GameStop’s rally. He appeared during a YouTube livestream conducted on a laptop at the New York Stock Exchange on June 7, 2024.
Michael Nagle | Bloomberg | Getty Images
Shares of GameStop fell more than 16% on Monday, as the meme stock continued its slide on Friday in the wake of a disappointing earnings report and a disappointing livestream from Roaring Kitty.
The video game company’s stock fell to just under $24 per share on Monday after falling nearly 40% on Friday. GameStop released its earnings report a few days ahead of schedule, showing that sales fell 29% in the first quarter. GameStop also announced it was selling an additional 75 million shares.
Meanwhile, meme stock champion Keith Gill hosted his first livestream in a few years on Friday. He revealed that he has no institutional backers and that the GameStop positions he shared in the screenshots were his only bets. Gill also reiterated his previous investment thesis and offered no new reasoning behind his large stake.
Michael Pachter, a GameStop analyst at Wedbush, said he was skeptical the company would be able to make any meaningful changes after a number of recent failed strategies.
“We fail to see how GameStop can add any value by conducting any new business, especially now that its entire C-suite has either been terminated or has decided to leave,” he said in a note.
Pachter said GameStop’s previous strategy to become like Amazon “completely failed” because three former Amazon executives hired to pursue the strategy left the company. Then, its plan to sell NFTs failed Subsequent partnerships He said the same would happen with the now-defunct FTX.
The analyst believes that any boost GameStop has received from Gill will be short-lived.
“We suspect that [Friday’s] A live stream from influencer Keith Gill (Roaring Kitty) will keep shares high enough for the company to meet its goals [at-the-market share offering]”But with no clear strategy in place, we suspect the stock price will begin to decline once again and head closer to our new price target,” Pachter added.
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