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GameStop Erases MTD Gains Amid Roaring Kitty’s Hibernation – Crypto News

Published

2 years ago

June 26, 2024

Dripp

Roaring Kitty’s new round of silence is causing the GameStop (GME) ecosystem too much loss at this time.

GME Price Continues to Drop

GameStop’s stock price has plunged significantly in the last few weeks fueled by the absence of famed trader and influencer Keith Gill. For those known of social circles, Gill is better known as Roaring Kitty. The dip got worse recently when the stock lost the last part of its gains over the past month.

According to Yahoo Finance, GME was trading at $23.09 at the time of this writing. Markedly, the stock is almost down by 3% from Monday’s closing price and 7% over the past week. Also, this latest loss has GameStop stock at a monthly dip of just over 3% representing approximately $0.75.

This is a shocking pivot for the stock considering how high it flew as of three weeks ago.

In early June, GameStop stock registered a monthly high of $46.55. This was around the time Gill revealed that he had acquired a position in the stock worth almost $600 million. The GME stock price saw a remarkable 47.45% increase in a single day, closing the trading session at $46.55 on June 6. Conversely, the Solana-based meme coin GME experienced a surge of 118%.

A few days after, Gill announced a loss of $350 million in profits as the GameStop stock price dropped by 50% within two days. In the days that followed, the stock saw more losses from the gain it initially recorded.

GameStop to Pivot to Smaller Network

More recently, Ryan Cohen, GameStop CEO informed investors that his focus for the gaming company is to achieve profitability. Hence, he hinted at a pivot to operate smaller networks of stores nationwide.

The unexpected announcement caused the value of the stock to plunge further. GameStop shares went down by 13.4% and traded at $24.86. Assuming the stock price continued to climb and reached as high as $65, GME bull’s holdings could have been worth $1 billion. Unfortunately, this was not the case.

Noteworthy, Gill ultimately exercised some of his GME option to boost his holding of shares from 5 million to just over 9 million. This would have been worth some $206 million as of this writing. There were widely spread rumors that Gill would join GameStop’s board but this was dashed last week when the shareholders meeting delayed. The delay was due to high trader demand on the game streaming platform.

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