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Roaring Kitty Goes MIA as GameStop Dumps on Retail Investors

In this post:

  • Roaring Kitty, aka Keith Gill, has not tweeted in nearly 48 hours after triggering a GameStop stock rally.
  • His sudden silence raises the concerns of investors who suspect a potential “pump and dump” scheme.
  • Kitty faces accusations that he boosted GameStop’s stock price for personal gain.

GameStop, the video game retail giant, is hitting the market hard with plans to sell up to 45 million new shares. This decision came hot on the heels of a major stock price jump, catalyzed by the unexpected comeback of day trader Keith Gill (AKA Roaring Kitty). 

 

GameStop is bracing for a drop in first-quarter net sales compared to the previous year. With shares closing 19.9% lower at $22.21 in New York, the potential revenue from these shares could hit around $1 billion if fully capitalized.

GameStop Shares New Strategy for Shares

On Friday, GameStop revealed this strategy in a filing to the US securities regulator, alongside some sobering preliminary financial results.

Last week was nothing short of a rollercoaster for GameStop’s stock, which saw an almost fourfold increase to a Tuesday peak of $64.83—the highest since mid-2021. By week’s end, GameStop reported a 27.2% rise in share price.

However, the company acknowledged that these dramatic price fluctuations seem disconnected from its actual business performance or operational results.

Source: TradingView

 

GameStop’s anticipated net sales are set between $872 million and $892 million, marking a decline of at least 27% from last year and falling short of the $1.05 billion analysts had projected.

Expected net losses could range from $27 million to $37 million, improving slightly from the previous year’s $50.5 million loss.

AMC Joins GameStop in Market Surge

The meme stock frenzy wasn’t limited to GameStop. AMC Entertainment, another key player from the 2021 stock surge, also capitalized on market trends.

Related: Could Gamestop & Amc Pumps Spark a New Meme Coin Season?

Last week, AMC entered an agreement to exchange nearly $164 million of subordinated debt due in 2026 for approximately 23.3 million newly issued shares, valued at about $7.33 each. Despite closing at $4.40, AMC’s stock experienced a 51.2% increase over the week.

Investors Scramble as Shares Fluctuate

Keith Gill’s posts sparked a significant rally in GameStop shares. However, he has gone silent on Twitter for nearly 48 hours since then.

This sudden disappearance has left investors and followers speculating about his next move, especially as the stock faces volatile swings.

Also Read: Roaring Kitty Makes an Iconic Comeback – Gamestop Is on Fire!

After the initial surge that brought GameStop shares to unprecedented heights, Roaring Kitty’s silence has raised concerns among investors about potential “pump and dump” schemes. Allegations have surfaced suggesting that Kitty may have artificially inflated the stock price only to profit from its peak, leaving many to hold depreciating assets.

The rapid rise and fall of the stock highlight the risky nature of investing based on social media trends, where the line between influence and manipulation can often become blurred. Many investors who joined the frenzy, attracted by the potential for quick profits, now face significant losses.

The lesson is simple. Jumping into highly volatile stocks on the back of internet hype—without solid fundamentals to back the investment—can be a precarious venture.

DisclaimerThe information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decision.

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