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Roaring Kitty Ends Bizarre Livestream As GameStop Crashes

Tyler Durden's Photo
by Tyler Durden
Authored...

Watch Roaring Kitty Live: 

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Update (1259ET):

To sum up the bizarre broadcast: Roaring Kitty is betting on GameStop CEO Ryan Cohen's turnaround with options that expire in two weeks.

... actually agree with Ross Gerber for once.

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Update (1259ET):

Roaring Kitty reveals positions.

Oof.

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Update (1251ET):

Here's a great take.

And that is a very good question. 

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Update (1241ET):

Roaring Kitty stated that he is actively managing his accounts and is not working with hedge funds. He clarified that he is not an institutional investor and that all trades are his own.

Dave chimes in...

Shares are LOD-ing. 

And this. 

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Update (1233ET):

No inspiring GME investment thesis has so far been given minutes into the broadcast. 

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Update (1229ET):

He's live.

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Update (1225ET):

GME hits the low of the day after Roaring Kitty is 25 minutes late to his own party. 

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Update (1215ET):

Roaring Kitty is 15 minutes late to his own party. 

The Internet is asking questions...

LoL...

A lot of interest on Google searches. 

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Update (1205ET):

Still waiting on Roaring Kitty to speak at 1205 ET. There's nearly half a million people tuning in. 

LoL...

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Update (1157ET):

Roaring Kitty will have some serious explaining regarding his investment thesis in GameStop during the 1200 ET live-streaming event on YouTube. 

'Meme' stock trader Keith Gill's (aka Roaring Kitty) latest pump was situated around GME CEO Ryan Cohen announcing another at-market equity offering (impeccable timing) - set to dump tens of millions of shares on Reddit momentum traders. Also, first-quarter earnings were messy, with sharp revenue declines in the first quarter. 

Again, what's the thesis here? 

Meanwhile, GME shares have nearly been halved from the premarket highs following GME's at-market equity offering announcement and dismal earnings report. 

Ahead of the live-streaming event, over 200,000 people are tuning in to hear Roaring Kitty speak. 

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Redditors and momentum chasers are being led into a burning building by 'meme' stock trader Keith Gill's (aka Roaring Kitty) on the latest pump as GameStop shares erase overnight gains following the announcement of sharp revenue declines in the first quarter and an "at-the-market offering" program to sell more shares.

Let's begin by describing the source of the latest pump. Roaring Kitty's YouTube live event, slated for 1200ET, was announced on Thursday afternoon, which sent shares doubling from around $26 in cash session to as high as $66 in after-hours trading.

In premarket trading, shares were above the $60 handle, then crashed 40% to around $38 following the news that GME filed an at-the-market offering to sell 75 million shares of the company's Class A common stock. 

Jefferies is the 'Sales Agent' on the deal.

Earlier, GME reported first-quarter results showing net sales of 881.80 million, down from $1.237 billion year over year. Net sales missed Wall Street's consensus estimate of $995.30 million. 

GME also reported an EPS loss of 12 cents, missing the average estimate of 9 cents. According to Reuters, this miss highlights customers' shift to online video games and collectibles, while the retailer continued to rely on its brick-and-mortar stores. 

Just weeks ago, during another pump by Gill, GME announced it sold 45 million shares of common stock for about $933.4 million. CEO Ryan Cohen is effectively using Gill's pumps to dump millions of shares into mom-and-pop retail, chasing momentum. 

At 1200 ET, Gill will have to re-explain his investment thesis in GME, as first-quarter earnings show a sharp decline, and Cohen is dumping endless shares. 

Meanwhile, reports suggest that ETrade might take action against Gill, and at least one securities regulator is currently investigating him for potential stock manipulation.

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