GameStop's shares fell by 20 percent on Friday after the video game retailer revealed plans for a share sale aimed at raising up to $3 billion.
This news came as a surprise to investors, especially ahead of a highly anticipated livestream by meme stock influencer Keith Gill, also known as "Roaring Kitty."
According to Reuters, the company reported its quarterly results four days earlier than scheduled, coinciding with Gill's YouTube announcement of a livestream at 12 PM ET on Friday.
GameStop announced it would sell up to 75 million shares but did not provide further details on the timing of the capital raise or the reason for the early earnings release.
In 2021, Gill's support for GameStop fueled a stock rally that saw prices soar by as much as 1,600 percent before a sharp decline. His influence garnered a cult following among some investors and scrutiny from others, leading to congressional and regulatory attention.
After facing intense scrutiny, Gill disappeared from the public eye but has recently resurfaced, reigniting interest in GameStop.
While the 2021 mania around GameStop was part of a broader Reddit-fueled retail investor backlash against short sellers, the current euphoria around the stock smacks more of opportunism, according to Interactive Brokers chief strategist Steve Sosnick.
“There was a huge us-versus-them mentality to the whole thing,” Sosnick told InvestmentNews in a recent interview. “This has a very different character to me. I don’t know who ‘them’ is. If it’s us versus them, you need a ‘them.’”
That lack of zealotry could be part of the reason behind the volatile character of this latest bout of GameStop mania.
On Thursday, GameStop shares surged nearly 50 percent, coinciding with activity from an account on X linked to Gill that drove investors to a frenzy. Since May 13, GameStop shares have climbed nearly 150 percent, according to Reuters.
The stock was trading at $36.95 just before the livestream, experiencing several trading halts due to volatility.
Reports of potential combination follow discussions between CEOs, sources say.
Mayer Brown, GWG's law firm, agreed to pay $30 million to resolve conflict of interest claims.
Orion adds new model portfolios and SMAs under expanded JPMorgan tie-up, while eMoney boosts its planning software capabilities.
National survey of workers exposes widespread retirement planning challenges for Gen Z, Millennials, Gen X, and Boomers.
While the choice for advisors to "die at their desks" might been wise once upon a time, higher acquisition multiples and innovations in deal structures have created more immediate M&A opportunities.
Barely a decade old, registered index-linked annuities have quickly surged in popularity, thanks to their unique blend of protection and growth potential—an appealing option for investors looking to chart a steadier course through today's choppy market waters, says Myles Lambert, Brighthouse Financial.
How intelliflo aims to solve advisors' top tech headaches—without sacrificing the personal touch clients crave
