Daily Washington Insider
  • Business
  • World
  • Science
  • Investing

Daily Washington Insider

  • Business
  • World
  • Science
  • Investing
Science

GameStop stock resurgent as influencer Roaring Kitty places $116m bet on retailer

by admin June 4, 2024
June 4, 2024
GameStop stock resurgent as influencer Roaring Kitty places $116m bet on retailer

The stock market influencer behind the so-called meme stock frenzy of 2021 has triggered a fresh surge in shares of GameStop, the struggling US videogame retailer.

Keith Gill, who goes by the name Roaring Kitty online, revealed a $116m (£90.8m) position in GameStop on Sunday.

Gill told his followers he controlled 1.8% of GameStop’s available stock – a holding of five million shares – plus call options that gave him the right to buy more later this month.

Money latest:
HSBC announces mortgage rate increases

A return to his Reddit account last month, for the first time in three years, was credited then for a renewed rush for GameStop and other out of favour stocks.

GameStop’s own market value doubled in just three weeks.

The retailer’s board cashed in on the renewed interest by raising more than $900m in a subsequent stock sale.

GameStop shares added $4.6bn to its market value after surging as much as 75% in early Monday deals.

They later settled around 30% higher.

LSEG data showed more GameStop shares had changed hands than in those for Apple within the first 42 minutes of official trading.

They stood at £30 per share following Friday’s close at $23.

Gill’s GameStop trades gave birth to the rush of demand for meme stocks in 2021.

It saw hedge funds’ positions rack up big losses as investors bought up stocks with weak fundamentals, such as GameStop and cinema chain AMC.

They gained a cult-like following through accounts on Reddit and elsewhere.

But the rallies petered out as regulators and politicians called out the activity and the companies’ performances failed to match up to the lofty valuations.

In the case of GameStop, its core numbers continue to be hurt by struggles associated with the transition to online gaming.

Its main business remains selling new and used videogame discs.

The company warned last month of a drop in first quarter net sales compared with the same period a year ago.

Nigel Green, chief executive of the asset management and advisory firm deVere Group, urged investor caution following the renewed interest but added: “These super quick, super high, headline-grabbing figures are likely going to attract another huge wave of interest and, therefore, capital.

“I would not be surprised if the stock added $100bn by the end of Monday due to the frenzy.”

This post appeared first on sky.com

0
FacebookTwitterGoogle +Pinterest
previous post
Drinking alcohol then napping on flights could be bad for your heart, study finds
next post
Modi heads for two days of island meditation as Indian election nears end

You may also like

Northern Lights could be visible in the UK...

May 19, 2024

Would you go to a virtual rave? New...

July 20, 2024

Government seeks £145m refund for COVID tests kits...

May 1, 2024

AI can now detect if cats are in...

June 14, 2024

Spain floods latest: Army called in to Valencia;...

November 1, 2024

Inside clinic which uses HD cameras, radar and...

September 6, 2024

Strange noises coming from faulty Boeing spacecraft aren’t...

September 3, 2024

Mpox: More cases of new Clade 1b strain...

November 5, 2024

Prehistoric DNA being dug up to see if...

May 6, 2024

SpaceX rocket booster makes successful landing after test...

October 13, 2024

    Stay updated with the latest news, exclusive offers, and special promotions. Sign up now and be the first to know! As a member, you'll receive curated content, insider tips, and invitations to exclusive events. Don't miss out on being part of something special.


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Popular

    • 1

      Hong Kong plans to install thousands of surveillance cameras. Critics say it’s...

    • 2

      UN experts urge Thailand not to deport dozens of Uyghurs to China where they face ‘real risk of torture’

    • 3

      China executes man who plowed car into crowds in deadliest attack in a decade

    • 4

      Trump has assembled a team of China hawks. How will Beijing respond?

    • 5

      How Calvin Klein and Tommy Hilfiger got caught in Trump’s trade war with China

    Categories

    • Business (1,301)
    • Investing (3,423)
    • Science (605)
    • World (3,677)
    Footer Logo

    Disclaimer: dailywashingtoninsider.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2024 dailywashingtoninsider.com | All Rights Reserved