"Roaring Kitty" Disappoints, GME Slips 40% After Long-Awaited Livestream

Keith Gill, known as "Deep-------Value" on Reddit and "Roaring Kitty" on X and YouTube, held his first livestream after the meme stock craze, reiterating his investment thesis in GameStop under CEO Ryan Cohen, and disclosing that his GameStop holdings are his only investments without institutional backing.

During the livestream, GameStop shares were suspended multiple times and eventually fell by nearly 40%, closing around $28 per share, still within the exercise price of Gill's 120,000 call options at $20, which if exercised, would require $240 million to purchase the shares.

The livestream also impacted other meme stocks, with AMC Entertainment dropping almost 14% during the broadcast, contributing to a year-to-date loss of over 19% for the stock, while Gill emphasized his belief in GameStop's potential rebirth led by its current management.

Keith Gill, also known as "Deep-------Value" on Reddit and as "Roaring Kitty" on X and YouTube, conducted his first livestream after the three-year-old meme stock craze.

Reiterating his prior investment thesis and providing no new justification for his substantial holding, Gill stated that he believes in the video game retailer's rebirth under CEO Ryan Cohen. Additionally, he disclosed that the GameStop holdings he had given in images were his sole wagers and that he had no institutional support.

A number of times throughout his webcast, GameStop shares were suspended. Following the company's previous revelation that revenues had decreased dramatically in the first quarter and that it was selling more stock, investors responded by sending the stock down over 40% on the day.

Even though GameStop was down 40% at the close of the trading day, at about $28 per share, the company is still inside Gill's call option exercise price. He owns 120,000 call options with a $20 strike price that expire on June 21st against GameStop.

If exercised, the notional value would be $240 million in shares purchased at $20 per share. Thus, Gill will require $240 million to obtain custody of the shares upon the exercise of the calls.

What Happened in the Livestream

Roaring Kitty called it quits about fifty minutes in on his live stream. There were many stops to trading at GameStop during the broadcast. Following the broadcast, GameStop's stock fell by almost 40%.

If it continued until the session closure, the stock would have had its worst one-day fall since shares fell more than 42% on February 4, 2021. Additionally, it would be the fourth worst day ever for GameStop.

On Friday, Roaring Kitty had a livestream that caused other meme stocks to drop. During the broadcast, AMC Entertainment's stock fell by almost 14%. The stock has lost over 19% of its value this year.

Roaring Kitty confirmed that his sole investments in the portfolio are the GameStop holdings he had displayed in screenshots: five million common shares and one hundred and twenty call options.

According to Gill, GameStop is included in the reinvention section of his theory.

He said the video game shop's legacy business is being overemphasized. He suggested that consumers concentrate on CEO Ryan Cohen and other management during the second stage, which turns into a "bet" on them.

Gill mentioned Cohen once, stating the CEO's surname and first name with expletives in between. Gill made it clear that he has no institutional support and that his positions at GameStop are his sole ones.

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