GameStop posted its worst session since 2021.  GameStop saw its largest one-day loss since February. 4, 2021, during which time the stock fell by over 39%. It would also be the fourth worst day ever for GameStop. 

Keith Gill, known as “Deep-Value” on Reddit and “Roaring Kitty” on X and YouTube, conducted his first livestream following the three-year-old meme stock craze with less fanfare for meme traders pushing the stock down on a slope. 

Gill stated that he believes in the video game retailer’s rebirth under CEO Ryan Cohen. Additionally, he disclosed that the GameStop holdings he had given in images were his only wagers and had no institutional support. 

Sometimes during his stream, GameStop shares were suspended. Following the company’s earlier revelation that revenues had decreased dramatically in the first quarter and that it was selling more stock, investors responded by sending the stock down over 40% on the day. 

Even though GameStop was down 40% at the close of the trading day, at about $28 per share, the company is still inside Gill’s call option exercise price. He has 120,000 call options with a $20 strike price that expires on June 21st against GameStop. 

If exercised, the notional value would be $240 million in stock purchased at $20 per share. Thus, for Gill to obtain custody of the stock upon the exercise of the calls, he will require $240 million. 

Roaring Kitty confirmed that his only investments in the portfolio are the GameStop positions he had displayed in screenshots: five million common shares and one hundred and twenty call options. 

With diminishing sales of hardware, software, and collectibles, the online retailer of video games announced a $32.3 million loss on $882 million in revenue for its first quarter of fiscal 2019. In comparison, last year saw a loss of $5005 million on $12,2 billion in revenue. 

The results, which included a sharp decline in sales year over year and a net loss, were unappealing. in line with the pre-announcement on May 17, with a free cash flow of approximately $155 million. 

The company’s stock fell $18.33, or 39 percent, to close the day at $28.22. By early Friday afternoon, the New York Stock Exchange had halted GameStop trading over fifteen times because of the stock’s atypically volatile trading.