#RoaringKitty #GameStop #MemeStocks
Roaring Kitty, the renowned meme stock trader known for his online personas 'Deep——-Value' on Reddit and 'Roaring Kitty' on X and YouTube, is making a long-awaited return to the livestream scene after a three-year hiatus. The anticipation for his comeback is palpable, with over 80,000 people already gathered on his YouTube page an hour before the scheduled noon ET livestream. This number represents a significant increase from the past when thousands would tune in for his extended GameStop discussions.
In a surprising turn of events, GameStop released its fiscal first-quarter earnings report earlier than anticipated, on the morning of the livestream. The report showed no signs of operational improvement, with net sales for the quarter amounting to $881.8 million, a 29% decline from the previous year's $1.237 billion. This sales decline surpassed the expectations of the two Wall Street analysts, whose estimates ranged from $900 million to $1.09 billion.
GameStop reported a narrower loss of $32.3 million compared to the $50.5 million loss in the year-earlier period. The company also announced plans to sell an additional 75 million shares, on top of the 45 million shares it had already announced in May, which raised over $900 million.
Roaring Kitty's GameStop bet has been a significant contributor to the stock's impressive 194% surge this quarter. His portfolio, as of Thursday night, consisted of five million shares of $GME common stock and 120,000 call options. The market value of these positions had grown to over $375 million since Sunday. However, shares of $GME plunged 20% on Friday morning, potentially impacting his paper profit.
If I decide to exercise my call options, my GameStop stake would increase to approximately 17 million shares, making me the fourth-largest shareholder. If the stock returns to its May high of $64.83 per share, my position would then be worth over $1 billion. The call options I hold have a strike price of $20 and expire on June 21. If the stock closes above $20 on that day, I could exercise the options at $20 apiece, adding an additional 12 million shares to my holdings.
I have the option to exercise the call options before June 21, paying a premium, or roll them to a further expiration date to buy some time. However, this could be a costly option. Should I decide to sell the options, it would likely be noticeable given the size of the position, potentially putting significant downward pressure on the stock.
I had temporarily halted my updates during the week following reports from The Wall Street Journal that Morgan Stanley's E-Trade broker was considering terminating my account due to concerns that my activities could be construed as market manipulation.
Perspective:
The comments section is filled with excitement and anticipation for Roaring Kitty's return to the livestream scene. Many users are eager to see how his GameStop bet will play out, especially given the recent earnings report. Some users are offering advice on how to manage his call options, while others are discussing the potential impact of his actions on the stock market.
Data:
- Roaring Kitty's GameStop bet has contributed significantly to the stock's 194% surge this quarter.
- GameStop's net sales for the quarter declined by 29% compared to the previous year, surpassing analyst estimates.
- Roaring Kitty's call options have a strike price of $20 and expire on June 21, giving him the potential to increase his stake to approximately 17 million shares.
Original Article: https://www.cnbc.com/2024/06/07/following-gamestop-action-during-roaring-kitty-livestream.html
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