GameStop’s annual shareholder meeting was thrown into chaos on Thursday as computer problems plagued the event. The meeting, scheduled to start at 11 a.m. ET, was hosted on ComputerShare. However, many attendees were met with error messages when trying to access the stream, with the page failing to load. According to reports on social media and CNBC’s own attempts to join the event, the servers crashed under the overwhelming interest in the stream.
The disruption to the shareholder meeting comes at a time of a new meme stock craze, with Keith Gill, also known as Roaring Kitty online, reigniting interest in GameStop. Gill made a name for himself in the online trading world for his significant bets on the stock, which led to a surge in retail trader activity. The stock rose by 14.4% on Thursday amidst the volatile trading session.
GameStop announced that it had raised over $2 billion in a recent at-the-market equity sale, taking advantage of the renewed meme stock rally. The company stated that the funds would be used for general corporate purposes, including potential acquisitions and investments. Traders have been keeping a close eye on Roaring Kitty’s actions, as his selling activity could impact the stock’s price.
In a sudden turn of events, a sell-off in GameStop shares occurred late in the afternoon trading session on Wednesday. This sell-off coincided with a spike in trading volume for call options that Roaring Kitty holds. Call options give the buyer the right to purchase a stock at a specific price within a particular timeframe, with their value increasing if the stock surpasses the strike price. The price of the contracts dropped by over 40% during the session, leading to a 16.5% plunge in the stock price.
Roaring Kitty reportedly owns 120,000 contracts of GameStop calls with a $20 strike price and a June 21 expiration. The significant volume of trading raised speculation that Roaring Kitty might be behind the activity. Options traders have noted that the open interest in these calls has decreased to 111,818 contracts, below Roaring Kitty’s initial 120,000 contracts. Over 47,000 contracts switched hands on Thursday, indicating continued interest and activity around GameStop’s stock.
Despite the challenges faced during the shareholder meeting, GameStop’s stock continues to attract attention and speculation in the market. With Roaring Kitty’s actions influencing trading activity, the future of GameStop remains uncertain as investors closely monitor developments in this evolving situation.
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