GameStop shares fell sharply, falling nearly 40%. The reason for the fall was the announcement of a major sale of shares, which should bring the company up to $3 billion.
This event took place during a live broadcast from Keith Gill, known online as "Roaring Kitty". Keith played a major role in the 2021 “meme madness.”
Gill's broadcast was his first public appearance in three years and attracted significant attention. It has also had a significant impact on the cryptocurrency market, especially meme coins.
In tandem with the stock market reaction, meme coins have seen significant changes in price. Dogecoin fell by 7.4%, Shiba Inu by 6.4%, and PEPE rose notably by 10.7%. Other meme coins including WIF and FLOKI fell 12.7% each, while BONK fell 10.3%.
Gill's livestream attracted more than 600,000 viewers at its peak, according to YouTube metrics. During the broadcast, he expressed confidence in GameStop CEO Ryan Cohen's ability to revive the business and revealed his stance on the company's GME.
“What can I say about GameStop? It's funny that I have pretty much the same feelings about everything. They are now at the stage of transformation... I think I see enough. I believe [CEO Ryan Cohen] could do it,” Gill said.
However, Gill warned his audience about the risks associated with his aggressive investing style, warning that subscribers could potentially "lose everything."
“That remains to be seen. You too must keep an eye on things, reserve the right to change your mind, as I do. Don’t follow anyone blindly,” Gill added.
GameStop shares were stopped several times during Friday's trading session, reflecting strong volatility. By midday, investors had traded more than $8 billion worth of GameStop shares, making it the second-largest traded stock on Wall Street after Nvidia, according to LSEG data.
On June 6, ahead of the livestream, GameStop shares rose 50% after Roaring Kitty made fun of the YouTube stream. The anticipation and market activity spilled over into the cryptocurrency markets, with meme coins like Brett and GME Token rising 27.88% and 138.74%, respectively, on the day.
Gill's livestream and the resulting market changes reminded us of how unpredictable meme stocks and meme coins can be. This highlights the importance of a cautious and thoughtful approach to investing.
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