GameStop Corp (NYSE:GME) shares are trading lower Tuesday, pulling back after rallying 21% on Monday. Here’s a look at what’s going on.
What To Know: GameStop shares surged Monday after Keith Gill, also known as “Roaring Kitty,” posted a position update on Reddit, making his return to the platform following a three-year hiatus.
Gill shared a screenshot on Reddit suggesting he had a $116 million bet on GameStop. The image appeared to show that the trader was holding 5 million shares of the video game retailer and 120,000 call options expiring later this month.
Gill is often credited with sparking the meme stock mania of 2021. He first broke his silence on X a couple of weeks ago when he posted a meme of a person leaning forward in a chair. The meme created a short-lived buying frenzy in meme stocks, but most of the names involved pulled back as Gill went silent again. The new Reddit post is his first across social platforms since he posted a clip from the film “E.T.” on May 17.
Monday afternoon, reports surfaced that E-Trade was trying to make a decision on whether to ban Gill from its trading platform for potential market manipulation. Gill reportedly bought a significant amount of call options on E-Trade.
People familiar with the matter reportedly said E-Trade was debating whether his actions should be deemed manipulation and discussing the kind of backlash they would receive from his supporters if they decided to boot him.
GameStop is due to report first-quarter financial results after the market close on June 11. The company is expected to report a loss of 9 cents per share and revenue of $1.05 billion, according to Benzinga Pro.
GME Price Action: GameStop shares were down 5.89% at $26.35 at the time of publication, according to Benzinga Pro.
Photo: JJBers from Flickr.
