GameStop (GME) stock fell as much as 17% in early trading Friday, June 7, after the video game retailer reported quarterly results that missed analyst estimates and announced a stock sale.
The came just hours before a highly anticipated livestream from “Roaring Kitty,” an alias used in the past by bullish retail investor Keith Gill.
Yesterday GameStock shares had soared 47% on Thursday after “Roaring Kitty” scheduled a YouTube livestream for noon ET on Friday.
That capped two days of gains–a total move of 76%–after a YouTube post said Gill, AKA Roaring Kitty, would return to post on GameStop for the first time in three years. On May 12 Gill tweeted a cryptic meme. Gill’s YouTube post contained no information on what the investor planned to discuss or whether he’d disclose new positions, his anticipated return sparked further speculation that he’s bullish on GameStop.
Today before Gill’s YouTube livestream, GameStop posted an adjusted loss of $0.12 per sharen for the first quarter versus Wall Street estimates of a loss of $0.09. Net sales dropped 29% to $882 million versus analyst estimates of $995.5 million. Wall Street had been was expecting the quarterly results later this month.
The company also filed to sell up to 75 million additional shares. Last month, GameStop sold 45 million shares, bringing in about $930 million in proceeds.
If you’re looking for sign of market top, I don’t think you need to look further than an example of speculative excess then this.
