Loss of 350 Million in a Week for Roaring Kitty in GameStop GME Stock Saga
Keith Gill, also known as Roaring Kitty, has experienced a significant loss in his GameStop Corp (GME) stock profits as the stock price has plummeted by over 50% in the last two trading sessions, resulting in a loss of around $350 million in just one week.
Gill, a prominent investor who gained popularity during the 2021 short squeeze rally of GME, had seen his investment in GME generate an impressive $382 million in profit last Thursday. However, the subsequent correction in the stock market has been harsh, with GME stock dropping by more than 50% in the last two trading sessions. As a result, Gill’s position has suffered a loss of $235 million by the end of Friday, and the bearish trend continued through Monday, with GME stock falling an additional 12%.
The sudden and substantial decrease in the stock price has led to a net loss of approximately $351 million for Gill within a week, leaving many investors concerned about the future of GameStop’s business model and the sustainability of meme stocks.
GameStop’s struggle to develop and implement a successful turnaround strategy has been a major cause for concern among investors. Michael Pachter, a GameStop analyst at Wedbush, expressed doubts about the company’s ability to make a significant recovery, citing its lack of a coherent strategy and previous failed attempts to revitalize its business operations.
Despite the grim outlook, Gill’s supporters remain hopeful for a potential upswing, expressing optimism on Reddit and encouraging fellow investors to hold onto their shares rather than sell them. However, the rapid decline in GME’s stock price has raised questions about the stability of meme stocks and the potential risks associated with investing based on social media hype.
The decline in GME’s stock price has also had an impact on the cryptocurrency market, with a meme coin called $GME, which parodies the GameStop company, experiencing significant volatility. Despite having no direct association with the GameStop corporation, the $GME token had surged by nearly 5000% since early June. However, as enthusiasm for GameStop diminished, the $GME meme coin also took a substantial hit, dropping by 25% in the last 24 hours.
Throughout the recent market turbulence, Keith Gill has maintained a lighthearted approach on social media, sharing memes that poke fun at his financial status and pretending to be injured during his livestream.
