Roaring Kitty’s Return Sparks GameStop Stock Surge Ahead of Livestream

GameStop shares surged Friday after Keith Gill, popularly known as Roaring Kitty, announced his return to YouTube after a three-year hiatus, sparking a buzz among retail investors backing the struggling video game retailer.

The Roaring Kitty YouTube channel, with over 700,000 subscribers, revealed that Gill is scheduled to host a livestream on June 7, causing GameStop’s stock price to soar by 47% to $47.55 on the day.

Gill, a financial analyst turned social media influencer, has been a key figure in rallying meme stock investors and previously testified before Congress about the meme stock craze.

Before Gill’s resurgence, GameStop had faced declining sales in the midst of a shift towards digital gaming. However, with the support of meme stock enthusiasts, GameStop managed to turn its fortune around.

The Wall Street Journal reported that E*Trade was considering removing Gill from its platform due to concerns over potential stock manipulation linked to his activities with GameStop.

Following Gill’s posts and updates, GameStop stock has experienced significant gains, alongside other meme stocks like AMC Entertainment and BlackBerry, drawing attention from amateur investors.

GameStop reported selling 45 million new shares earlier in the year, generating over $933 million in fresh capital after years of consecutive losses. The company’s turnaround was further bolstered by the appointment of Ryan Cohen, founder of Chewy, as its new CEO.

Morgan Stanley, through E*Trade, is reportedly evaluating Gill’s actions to determine if any legal implications exist around possible stock manipulation, while the SEC is reviewing trading activity around GameStop call options in connection with his social media posts.

GameStop’s stock jumped 47.5% after the announcement of Gill’s upcoming livestream, prompting trading halts on the New York Stock Exchange due to the rapid surge.

GameStop is set to report its Q1 earnings on June 11, with estimates suggesting revenue may fall short of FactSet forecasts. Meanwhile, meme stock AMC Entertainment also saw a rise in its stock price following the GameStop rally.

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