In May 2024, the shares of GameStop soared to $39.55 with renewed meme investing, apparently induced by a post on X from Keith Gill known as Roaring Kitty. He was the man who earlier inspired a 2000% increase in the firm’s stock price. The stock price almost quadrupled this time even as the firm forecasted a 27% drop in revenue for its first quarter from the same period last year.
The firm announced it was issuing 45 million shares while also saying the swings in its share price “do not appear to be based on the underlying fundamentals of our business.” The firm was taking advantage of overpriced shares to issue stock. Suckers will subscribe to the offering. By March 2025, the stock price was down to $24.60.