Latest news with #KeithGill
Yahoo
23-05-2025
- Business
- Yahoo
Why Is GameStop (GME) Stock Rocketing Higher Today
Shares of video game retailer GameStop (NYSE:GME) jumped 7.8% in the afternoon session after stocks tied to digital assets surged as Bitcoin, the world's largest cryptocurrency by market cap, reached a new all-time high, edging past the $110,000 mark. This rally also reflects growing investor confidence in Bitcoin's role as a potential store of value during a period of heightened market uncertainty. Geopolitical tensions, escalating trade disputes, and ongoing concerns about U.S. debt sustainability have prompted a flight to alternative assets, with digital currencies emerging as a perceived hedge against some of these risks. After the initial pop the shares cooled down and closed the day at $30.91, up 10.2% from previous close. Is now the time to buy GameStop? Access our full analysis report here, it's free. GameStop's shares are extremely volatile and have had 50 moves greater than 5% over the last year. In that context, today's move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business. The biggest move we wrote about over the last year was 12 months ago when the stock gained 104% on the news that retail trader Keith Gill (also known as Roaring Kitty) disclosed a stake in the company valued at around $115.7m. According to the screenshot posted on Reddit, Keith Gill bought 5 million GameStop shares at $21.27 and 120,000 call options worth $65.7 million with an exercise price of $20, set to expire on June 21, 2024. The update suggests a return of meme stock trading (includes taking long positions in heavily shorted stocks), fueled mostly by retail investors. As a reminder, Keith Gill played a significant role in the last meme stock trading frenzy in January 2021. By taking long positions in stocks that have been heavily shorted, market participants can trigger a short squeeze, causing a stock price to go up. This happens as short positions are closed to limit losses, as the collective buying pressure of market participants causes the stock price to move against those with a short position. GameStop is up 1.8% since the beginning of the year, but at $31.20 per share, it is still trading 33% below its 52-week high of $46.55 from June 2024. Investors who bought $1,000 worth of GameStop's shares 5 years ago would now be looking at an investment worth $29,856. Unless you've been living under a rock, it should be obvious by now that generative AI is going to have a huge impact on how large corporations do business. While Nvidia and AMD are trading close to all-time highs, we prefer a lesser-known (but still profitable) semiconductor stock benefiting from the rise of AI. Click here to access our free report on our favorite semiconductor growth story. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Irish Daily Star
30-04-2025
- Entertainment
- Irish Daily Star
‘Hilarious' Netflix original movie reminds fans of a classic ‘underdog' flick
A Netflix original movie that fans called 'the ultimate David and Goliath tale' is based on a true story. Dumb Money is a comedy film with an impressive list of stars in the cast, including Seth Rogen, Shailene Woodley, Sebastian Stan and Pete Davidson. The film, which has been called 'hilarious' was released in 2023, and chronicles the GameStop short squeeze of January 2021. It is a story of regular working people who flipped the script on Wall Street, and got super rich. The wild incident, which happened in real life, is reminiscent of other 'underdog' stories, like Money Ball and The Social Network. Read More Related Articles Melania Trump shows true colors with 3-word command to Donald at Pope's funeral Read More Related Articles Trump is 'overwhelmed and distracted' after 100 days as POTUS, expert says The lead character, Keith Gill, played by Paul Dano, is based on the actual man who was responsible for turning GameStop into the world's hottest company - at one point. He was a middle-class man working as a financial analyst in Massachusetts , who frequented stock market subreddits in his spare time. In the height of the Covid-19 pandemic, Gill notices that video game retailer GameStop's stock is falling. He invests his life savings into it, much to the shock and annoyance of his wife - played by Woodley - and his brother - played by Davidson. The movie is based on the real life experience of Keith Gill (Image: Netflix) According to Columbia Pictures, 'When his social posts start blowing up, so does his life, and so do the lives of everyone following him. As a stock tip becomes a movement, everyone gets rich--until the billionaires fight back, and both sides find their worlds turned upside-down.' Everyone loves an underdog on screen, particularly when the character is based on a real-life individual who fought back against the system to become successful. Given that the GameStop incident happened just four years ago, the topic also feels relevant. On Reddit, CantaloupeCube discussed this, writing, 'I thought the movie was pretty entertaining and included a lot of the wsb memes. It also follows what the pandemic was like then. I was thinking oh yeah I remember those times (only two years ago).' Another user added, '8/10 loved it. Movie does a great job of turning a complex story into a simple enough story without bending the facts. Wish it was longer, but still really entertaining and has a lot of heart. It's up there with movies like The Big Short and Wolf of Wallstreet.' Longjumping-Funny-81 replied: 'The soundtrack feels very derivative of The Social Network.' For the latest local news and features on Irish America, visit our homepage here .
Yahoo
29-03-2025
- Business
- Yahoo
GameStop slumps as its plan to sell debt to fund bitcoin purchases raises some questions
GameStop shares sunk Thursday after its plan to sell debt in an effort to fund purchases of bitcoin raised some questions on Wall Street. The video game retailer announced a private offering of $1.3 billion in debt. The company said earlier this week that it plans to purchase bitcoin as a reserve asset. It will use proceeds from this debt offering to buy the cryptocurrency. The stock slumped 22.1%, marking a sharp reversal from Tuesday's 11.7% gain. Trading in GameStop's stock, which is often included with other so-called 'meme' stocks, can be volatile. The debt offering comes at a big premium to the company's value. It could also leave out a large portion of GameStop's investors who wouldn't qualify for the offering under certain investor requirements, according to a note from Wedbush led by analyst Michael Pachter. 'We find it hard to understand why any investor would be pay more than two times cash value for the potential for GameStop to convert that cash into Bitcoin, particularly since the same investors can invest in Bitcoin or a Bitcoin ETF themselves,' he said in the note. The company has around $4.8 billion in cash and the conversion will bring its cash to $6.1 billion, he said. The stock is currently valued at about $12.7 billion. GameStop shares are down substantially from last May when influential investor Keith Gill, popularly known as 'Roaring Kitty,′ appeared online for the first time in three years to declare his support for GameStop. Gill helped ignite a 'meme" stock craze in early 2021, when GameStop's stock price soared above $120. 'Despite a complete lack of articulated strategy, GameStop has consistently been able to capitalize on the existence of a 'greater fool' willing to pay more than twice its asset value for its shares, and so far, they've been right,' Pachter said. Even given their reservations about the note offering and bitcoin strategy, Wedbush analysts said in a separate note that they were 'impressed' by GameStop's ability to generate an operating profit in the fourth quarter of 2024 and 'are more confident than we have been in the past that GameStop can achieve breakeven results for the foreseeable future.' Sign in to access your portfolio
Yahoo
27-03-2025
- Business
- Yahoo
GameStop share price is bouncing after revealing plan to buy Bitcoin in untested strategy which it admits ‘may prove unsuccessful'
shares surged after the company announced it is investing in Bitcoin as 'a treasury reserve asset,' with no set limit on how much it plans to buy. GameStop shares are bouncing today on the news that the meme-stock darling is investing an undisclosed amount of its cash reserves in Bitcoin. And it seems the sky is the limit when it comes to spending on cryptocurrency, with GameStop confirming in an SEC filing that it had not set a 'maximum amount' on how much it plans to buy. GameStop's share price is up 14% since the close on Tuesday at the time of publishing. While financial institutions are still eyeing just how far they want to diversify into assets like crypto given their volatility, GameStop backers were buoyed by the news after months of speculation. Despite the view of many on Wall Street that Bitcoin is still an asset too rogue to be adopted into the mainstream, the asset has seen massive gains, especially since President Trump's inauguration. In the past six months, the price of Bitcoin has spiked more than 40% to $87,104—and is up more than 1,245% over the past five years. In that time, the cryptocurrency has also suffered huge fluctuations, but this is unlikely to faze GameStop shareholders. After all, they've been along for a bumpy ride with the video game retailer. In 2021 GameStop made headlines when retail investors—connected via social media platform Reddit—coordinated a share purchase program after noticing institutional investors were offloading the stock. The retail investors, led by Keith Gill, a.k.a. investor-influencer Roaring Kitty, sent the share price spiraling to all-time highs, and, with this influx of new supporters, GameStop shifted to an e-commerce platform under new leadership. Since then, the price of GameStop (GME) has fluctuated significantly, but it has experienced a boost in recent days, courtesy of the company's latest announcement. Yesterday, the company said in a statement that 'its board has unanimously approved an update to its investment policy to add Bitcoin as a treasury reserve asset.' In an SEC filing seen by Fortune and published the same day, GameStop added: 'The board approved the addition of Bitcoin as a treasury reserve asset, whereby a portion of our cash or future debt and equity issuances may be invested in Bitcoin.' 'We may sell any Bitcoin we may acquire,' it continued. GME could buy a lot of Bitcoin if it wished: The SEC filing this week confirmed that as of Feb. 1, the business held nearly $4.8 billion in cash. While many GME backers will be accustomed to a level of risk with the business, the company is making it clear to shareholders it knows the risks. The SEC filing this month noted that Bitcoin purchases pose risks to the business in various ways. The first is if the value of the investment declines, it explains: 'The company's investment policy permits the company to invest from time to time in securities and certain cryptocurrencies, including Bitcoin and U.S.-dollar-denominated stablecoins, and the company is, and will be, exposed to market volatility in connection with these investments. 'The company's financial position and financial performance could be adversely affected by worsening market conditions or poor performance of such investments. Bitcoin, for example, is a highly volatile asset and has experienced significant price fluctuations over time. Our Bitcoin strategy has not been tested and may prove unsuccessful.' A second consideration is that investing in crypto inherently comes with its own set of risks. The filing adds: 'The Bitcoin markets have historically experienced significant volatility in price, limited liquidity and trading volumes, relative anonymity, potential susceptibility to market abuse and manipulation, compliance and internal control failures at exchanges, and other risks inherent in its entirely electronic, virtual form and decentralized network. 'We are continually examining the risks and rewards of our strategy to acquire and hold Bitcoin. By investing in Bitcoin, we may become subject to counterparty risk, such as with our Bitcoin custodians and those with whom we transact in Bitcoin or other cryptocurrencies.' GameStop did not respond to Fortune's request for comment. This story was originally featured on Sign in to access your portfolio
Yahoo
27-03-2025
- Business
- Yahoo
GameStop slumps as its plan to sell debt to fund bitcoin purchases raises some questions
GameStop shares sunk Thursday after its plan to sell debt in an effort to fund purchases of bitcoin raised some questions on Wall Street. The video game retailer announced a private offering of $1.3 billion in debt. The company said earlier this week that it plans to purchase bitcoin as a reserve asset. It will use proceeds from this debt offering to buy the cryptocurrency. The stock slumped 22.1%, marking a sharp reversal from Tuesday's 11.7% gain. Trading in GameStop's stock, which is often included with other so-called 'meme' stocks, can be volatile. The debt offering comes at a big premium to the company's value. It could also leave out a large portion of GameStop's investors who wouldn't qualify for the offering under certain investor requirements, according to a note from Wedbush led by analyst Michael Pachter. 'We find it hard to understand why any investor would be pay more than two times cash value for the potential for GameStop to convert that cash into Bitcoin, particularly since the same investors can invest in Bitcoin or a Bitcoin ETF themselves,' he said in the note. The company has around $4.8 billion in cash and the conversion will bring its cash to $6.1 billion, he said. The stock is currently valued at about $12.7 billion. GameStop shares are down substantially from last May when influential investor Keith Gill, popularly known as 'Roaring Kitty,′ appeared online for the first time in three years to declare his support for GameStop. Gill helped ignite a 'meme" stock craze in early 2021, when GameStop's stock price soared above $120. 'Despite a complete lack of articulated strategy, GameStop has consistently been able to capitalize on the existence of a 'greater fool' willing to pay more than twice its asset value for its shares, and so far, they've been right,' Pachter said. Even given their reservations about the note offering and bitcoin strategy, Wedbush analysts said in a separate note that they were 'impressed' by GameStop's ability to generate an operating profit in the fourth quarter of 2024 and 'are more confident than we have been in the past that GameStop can achieve breakeven results for the foreseeable future.'
