In early May 2024, GameStop (NYSE: GME) exploded back into public consciousness – and saw its stock price likewise skyrocket – as Keith Gill, known online under several nomes de guerre, including as the Roaring Kitty, returned to the scene.
June was a particularly eventful month, as Gill revealed his GME position, ran a live stream centered on the meme stock, and as GameStop itself made a renewed stock offering after it witnessed its shares climb as high as $48 at times.
Despite the excitement, the analysis firm Wedbush used the opportunity to reiterate its ‘underperform’ – ‘sell’ – rating for the meme stock and lower the 12-month price target from $13.50 to $11.
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Along with the fact that it was Gill’s return, and not something GameStop has done that drove the rally, the analysts are bearish due to the latest batch of 75 million shares sold by the company not raising as much money as anticipated.
Given that GME closed around $46 on June 6, it was expected the sale would be completed at an average price of $40. Instead, GameStop sold the stock at an average price of $28.50 – a total difference of over $860 million.
Nonetheless, the tumult has prompted at least some long-standing bears to stop betting against the company.
Indeed, while GME shares are below their monthly highs, GameStop stock remains well below its more standard 2024 range between $10 and $16, given that GameStop price today stands at $28.70.
GameStop short squeeze forces bears to capitulate
Citron Research – a company that became an adversary of the apes during the original meme stock craze – announced on June 12 that it is abandoning its short position against GameStop.
In the X post, the company made sure to emphasize that it does not believe that anything has fundamentally changed to make GME more promising but rather that it is conceding to the stock market’s ability to remain irrational for prolonged periods.
Just days earlier, Citron leveled criticism at Keith Gill, stating he is no longer ‘a relatable investor’ and has become ‘just another rich stock promoter with a flashy car collection.’ The company also hypothesized that ‘behind this trading activity is some mysterious crypto backer.’
Andrew Tate and RFK Jr. join the GameStop rally
While it is unclear whether Gill has indeed transformed or not, another famous internet personality with a flashy car collection did join the GameStop hype in June 2024 – Andrew Tate.
Indeed, Tate not only bought more than 2,000 GME shares earlier in June but also promised to ‘diamond hand’ them.
Finally, the ongoing GameStop resurgence is not solely confined to retail investors and influencers, given that RFK Jr., the independent presidential candidate, announced he has invested $24,000 in late May in support of the movement.
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