In the early days of May 2024, GameStop (NYSE: GME) burst back into the spotlight, with its stock price soaring as Keith Gill, also known as the Roaring Kitty, made a triumphant return to the scene. The month of June was full of excitement, as Gill disclosed his GME position, hosted a live stream focusing on the meme stock, and GameStop itself issued a new stock offering after its shares reached highs of $48.
Despite the buzz surrounding GameStop, Wedbush, an analysis firm, took the opportunity to reaffirm its ‘underperform’ rating on the meme stock and reduced the 12-month price target from $13.50 to $11. The analysts cited the latest sale of 75 million shares by the company, which did not raise as much money as expected.
Although GameStop closed around $46 on June 6, the stock was sold at an average price of $28.50, resulting in a significant difference of over $860 million. This unexpected turn of events led some long-standing bears to reconsider their positions, with GameStop stock trading below its monthly highs at $28.70.
Citron Research, a company that was previously critical of GameStop, announced on June 12 that it was abandoning its short position against the company. Despite not seeing any fundamental changes to make GME more appealing, Citron acknowledged the unpredictable nature of the stock market.
In a surprising twist, Andrew Tate, another well-known internet personality, joined the GameStop hype by purchasing over 2,000 GME shares and vowing to hold onto them. Additionally, RFK Jr., the independent presidential candidate, revealed that he had invested $24,000 in late May to support the movement.
The ongoing resurgence of GameStop is not limited to retail investors and influencers, as traditional financial institutions and high-profile individuals continue to be drawn to the excitement surrounding the meme stock.
