The high volatility around GameStop Corporation GME stock continues after the return of Roaring Kitty, aka Keith Gill, on social media prompted increased attention in the video game retailer.
On Thursday, high interest in the company's annual shareholder meeting led to a server crash, causing the postponement of the event.
What Happened: GameStop previously announced first-quarter financial results and plans to sell 75 million shares in an at-the-market offering, which has since been completed.
The company had set Thursday as the date for its annual shareholders meeting. Increased attention on the stock thanks to Roaring Kitty may have led to the server crash Thursday.
Computer Share, who hosted the meeting, told CNBC a high amount of traffic led to servers crashing.
CNBC said the meeting was "immediately adjourned" due to the technical difficulties witnessed by shareholders Thursday.
GameStop has rescheduled the shareholders meeting for 4 p.m. ET on Friday, coinciding with the market close for the end of the week.
Related Link: Who Is Roaring Kitty? Why Does His Return To Social Media Matter For GameStop Stock?
Why It's Important: GameStop has raised around $3 billion in two recent share offerings since the stock rose from the return of Roaring Kitty on social media.
The company has said it could use the money for acquisitions and investments. GameStop also shared details of a plan in 2023 that stated that CEO Ryan Cohen could invest the cash on the balance sheet.
GameStop has shared minimal details in recent quarters with small prepared financial results and a decision not to host a conference call in many consecutive quarters.
Investors are looking for updates from the company on its cash and future plans.
Shares have also been increasingly volatile Wednesday and Thursday as the June 21 $20 calls, which Roaring Kitty owns a large stake in, saw increased volume.
Roaring Kitty shared an update on his portfolio position during his YouTube livestream, but has not shared an update since. With a limited number of days to make a move on his 120,000 calls, some have suggested that Roaring Kitty may have sold a portion of his options Wednesday.
With open interest listed at 111,818, which is below Roaring Kitty's 120,000 original count, it is likely that a portion of his options were sold or exercised.
Others have suggested that Roaring Kitty may have added to his position Thursday.
On Thursday, the June 21 $20 calls were trading up 40% to $8.95. Roaring Kitty shared that his cost basis was $5.674 each in a previous screenshot.
Friday’s meeting could provide increased action in the shares in after-hours trading and carryover into next week depending on what is shared and how investors digest it.
GME Price Action: GameStop shares are up 13% to $28.89 on Thursday versus a 52-week trading range of $9.95 to $64.83. GameStop shares are up 61% year-to-date in 2024.
Photo: Shutterstock
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