GameStop Defies All Logic Again After Roaring Kitty Plays Santa, Sending Shares Up 10%...

Just when you thought the GameStop saga was ready to be filed under “2021 fever dreams,” Keith Gill—better known as Roaring Kitty or DeepF**ingValue* to his Reddit faithful—decided to drop a little Christmas chaos into portfolios everywhere. At 8 a.m. on Christmas morning, Gill posted a photo of a single wrapped gift on X. No caption. No context. Just vibes, baby. 

(Source: X) 

Naturally, the internet did what the internet does best: overreacted. The post racked up 4 million views and had more likes than a Kardashian selfie by the time you finished unwrapping presents. The result? GameStop shares jumped nearly 10% in premarket trading yesterday, hitting their highest level since June. Because who needs fundamentals when you’ve got Roaring Kitty playing Santa?

(Source: Quartz) 

In short, GameStop is the melting ice cube that just won’t quit. They are about as thriving as Blockbuster was in 2010 with the company bleeding sales for five straight quarters. Analysts of course aren’t holding their breaths for a miracle in January as revenue is expected to drop to $1.48 billion from $1.79 billion, and earnings per share could nosedive by over 60%. Basically, it’s ugly out there.

And yet, somehow, GameStop’s stock is up a staggering 98% in 2024. Forget revenue forecasts or foot traffic—this is a stock powered by degenerate emotions and the occasional cryptic tweet from its meme-stock messiah.

(Source: Giphy) 

But, but, but… here’s the thing: When it comes to fundamentals, it’s almost like GameStop management has never heard of ‘em. It’s clear that GameStops business model is struggling bigly. The shift to digital downloads has gutted their retail empire, and their attempts to pivot have been… questionable. Remember their NFT marketplace? Exactly.

For instance, Wedbush analyst Michael Pachter, one of the few brave souls still covering GME, has a $10 price target on the stock. Why? Because the company has $10 per share in cash and no clear plan to use it. In his words: “This stock trades on hopium.” But in reality? None of that matters. Not the declining sales. Not the lack of strategy. Not even the fact that GameStop is basically RadioShack with better branding. As long as Roaring Kitty is tweeting and WallStreetBets is watching, GameStop remains a meme-stock darling.

(Source: IBD) 

So with that said, what did Roaring Kitty’s Christmas tweet actually mean? Honestly, who cares? For the meme-stock faithful, the mere possibility that it could mean something was enough to send shares soaring. By mid-morning Thursday, GameStop shares were up another 6%, proving once again that this stock runs on nostalgia, drama, and a healthy dose of anti-Wall Street sentiment. 

In the end, GameStop may be a melting ice cube, but it’s one hell of an entertaining one to watch. Sure, the fundamentals are trash, but the meme-stock crowd isn’t here for balance sheets—they’re here for the thrill of the story. So as we all close out  2024, let’s take a moment to appreciate the phenomenon that is GameStop. It’s not about the business. It’s not even about the stock. It’s about the narrative. And as long as Roaring Kitty is around, that narrative isn’t going anywhere.

(Source: New York Post) 

So, here’s to GME—a stock that defies logic, thrives on chaos, and reminds us all that sometimes, the market is less about numbers and more about vibes LOL. In the meantime, do what you will with this information, but if you’re buying GameStop because of a wrapped up Christmas gift, well, maybe set aside some money for therapy…you know, just in case. As always, stay safe and stay frosty, friends! Until next time…

P.S. You know how long it’s been since GameStop degenerates have waited for Roaring Kitty to rise from the dead and boost shares (again)? Quite a while. But do you know who is averaging at least one 100% move nearly every single week? Stocks.News premium, baby. Click here to join our elite community and officially grab the market by the balls horns! 

Stocks.News does not hold positions in companies mentioned in the article.