GameStop shares saw a significant drop of over 16% on Monday after a disappointing earnings report and Keith Gill’s underwhelming livestream. The stock fell to just under $24 per share after a 40% drop on Friday and GameStop reported a 29% decrease in sales for the first quarter. Additionally, GameStop announced plans to sell an additional 75 million shares.
Keith Gill, also known as Roaring Kitty, hosted a livestream on Friday where he revealed that he had no institutional backers and his GameStop positions were his only bets. However, he did not offer any new reasoning behind his investment thesis. GameStop analyst Michael Pachter remains skeptical of the company’s turnaround potential after a series of failed strategies. He believes that any boost from Gill’s livestream may be short-lived.
GameStop’s prior strategy to compete with Amazon was deemed a failure as key executives left the company. Their plan to sell NFTs also fell apart after partnering with FTX, which has since shut down. Pachter does not see any clear strategy for GameStop moving forward and predicts that the share price will begin to descend again, approaching his new price target.
Despite the recent sell-off, some investors are optimistic about GameStop’s future potential. The company has been the center of attention for meme stock traders and retail investors, who have contributed to significant volatility in the stock price. Whether GameStop can make a successful turnaround remains to be seen, but the influence of traders like Keith Gill will likely continue to shape its market performance in the future.
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