Ross Gerber, the CEO of Gerber Kawasaki, took to X, formerly Twitter, to express his concerns about GameStop Corp. GME on Monday.
What Happened: Gerber shared his thoughts on the popular meme stock, GameStop, in a post that read, “Something smells stinky in the Kitty litter.” The investment advisor with over $2.2 billion in assets under management also added a black cat emoji and the ticker of GameStop in the post.
Gerber’s post comes at a time when GameStop’s stock has been experiencing significant volatility. The company’s shares have been on the rise, fueled by the actions of influential investors and traders.
Why It Matters: Gerber’s post comes after Keith Gill, better known as ‘Roaring Kitty,’ revealed a massive GME position on Reddit. The influential investor, who has a large following among Redditors, especially users of r/WallStreetBets, posted a screenshot on r/SuperStonk subreddit, revealing that in addition to the shares, he also has about $65.7 million in call options expiring on June 21 with a strike price of $20 each.
On Tuesday, Citron Research commented that Gill’s initial appeal stemmed from his authenticity and detailed investment thesis, but now his actions seem like manipulation due to his large trades and significant options positions. They suggested someone might be backing him, as his finances alone wouldn’t support such trades, likening his current behavior to that of a “roaring Icarus.”
Gerber’s tweet also follows a scathing attack on E*Trade by Dave Portnoy, founder of Barstool Sports. Portnoy criticized E*Trade for considering banning Roaring Kitty over allegations of stock manipulation. His reaction highlights a deep-seated frustration within the retail trading community, which often feels marginalized by larger financial institutions.
Meanwhile, Jim Cramer has sounded the alarm and advised investors to take profits as GameStop and AMC shares soar again. Cramer believes he knows what's coming next, given that Keith Gill, also known as "Roaring Kitty" on YouTube and X or "DeepF***ingValue" on Reddit, posted a screenshot on Reddit over the weekend suggesting he currently has a $116 million position on GameStop.
Photo Courtesy: Shutterstock.com
Price Action: On Tuesday, GameStop shares closed 21% higher at $28 in the regular session and gained another 8.4% in the after-hours trading, according to Benzinga Pro data.
This story was generated using Benzinga Neuro and edited by Shivdeep Dhaliwal
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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