Home Stock Market GameStop earnings soared - but retail traders were loyal even as 'Roaring...

GameStop earnings soared – but retail traders were loyal even as ‘Roaring Kitty’ lost just $ 2 million in banknotes


After the initial boom higher, investors in Wall Street’s most popular meme stocks on Tuesday faced an actual dose.

GameStop
GME,
-6.55%

Failure to analysts’ Estimates of earnings and earnings per shareBut while Wall Street pros are more prepared for it, social media GameStop fans seem ready to celebrate whatever the traditional firm has to offer. , aims to turn 4th quarter income call into a financial account equivalent to Coachella virtual currency.

Interest in GameStop emerged after its frenetic start to 2021, spurred by individual investors who bought in on the belief that hiring Chewy Inc.
ALL,
-1.39%

co-founder Ryan Cohen will lead to a major overhaul to the company’s business model.

On Tuesday, the company said it had “solidified” its balance sheet and ended the year with $ 635 million in cash, “laying the foundations for transformation.”

And while changes are possible – GameStop executives also appoint a new chief executive, former Amazon.com Inc.
AMZN,
+ 0.86%

CEO Jenna Owens, is part of a larger-scale turnaround effort – they may not come fast enough to justify their $ 12.6 billion market cap, according to some Street analysts Wall said.

The bulls around stocks peaked in late January, with GameStop shares rising 930% in the year to that point, leading to losses between hedge funds and other investors already. bet incorrectly that the stock will lose its value. Stocks have since cooled but are still up 865% for the year, according to FactSet data, as of the end of Tuesday.

Nearly half an hour before GameStop’s quarterly call even began on Tuesday afternoon, the Texas-based video game retailer was overwhelmed by the sheer range of interest, with attendees going to be Find yourself locked out of the event due to the large amount of call-in.

That fact delighted Reddit users, with many enjoying watching a CNBC host admit on live television that she couldn’t dial a number.

One user posted on r / WallStreetBets: “She said she never couldn’t be on the earnings call”. “Lmao.”

However, it didn’t take long for that celebratory atmosphere, which initially saw GameStop’s shares rise 11% in after-hours trading, giving way to slightly lower lows, as out of trading. hours in the company showed double-digit losses occurred. Wednesday. That slump sparked speculation that the retail traders’ favorite foe, the short-selling hedge funds, was at work.

“I think hedgies are holding short-sold stocks to use after earnings reports to give the impression that people are panicking selling,” speculated one post. “I think that’s why the prices were so steady last week and why the trading volume was so low. They waited for the right moment to act. “

Indeed, the mood was overcast when the earnings call ended. That was until GameStop hodlers’ patron saint, Keith Gill, aka Roaring Kitty, aka DeepF @ # $ ingValue, released his first Reddit missive in over two weeks – a screenshot it appears that his trading account disclosed that while he lost almost $ 2 million on GameStop on Tuesday alone, which grew by almost $ 24 million over the year.

The tweet is similar to a call to fight for loyalists who keep their course, despite the drop.

“He knows how to time these posts,” praised one of Gill’s followers.

Another replied: “There is no joke that he probably saved people $ 20 / share on this post.”

But even Roaring Kitty has to admit that it’s an ugly thing for everyone’s favorite meme store, at the end of the day.

On Tuesday’s final check, GameStop shares fell more than 15%, with about 4 million shares changing hands after hours.

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