GameStop’s annual shareholder meeting faced significant disruptions due to technical difficulties on Thursday. The meeting, scheduled to start at 11 a.m. ET and hosted on ComputerShare, experienced server crashes as attendees tried to access the event. Many individuals received error messages indicating that the page couldn’t load. The overwhelming interest in the stream caused the servers to be unable to handle the traffic, leading to an unexpected adjournment of the meeting.
Following the chaos at the shareholder meeting, GameStop announced that it would provide an update on the rescheduling of the event as soon as possible. However, the company couldn’t be reached for immediate comment on the situation. On the other hand, a customer service representative for ComputerShare acknowledged the “mass amount” of issues and server overload from people trying to access the meeting. They stated that the tech team was working on resolving the problem and advised interested parties to attempt logging in every 5 to 10 minutes.
The disruption at GameStop’s shareholder meeting coincided with a resurgence in the meme stock craze, which was further fueled by Keith Gill’s return to social media after a three-year hiatus. Known as Roaring Kitty online, Gill’s active trading and big bets on GameStop had previously sparked a frenzy among retail traders. The stock surged 14.4% on the day of the disrupted meeting, showcasing the continued volatility surrounding meme stocks.
GameStop’s recent at-the-market equity sale raised over $2 billion, utilizing the revived meme rally to bolster its financial standing. The company stated its intention to use the funds for general corporate purposes, potentially including acquisitions and investments. Traders closely monitored Roaring Kitty’s activities, fearing that his selling could negatively impact the stock price. The sudden sell-off in GameStop shares and the significant trading volume in call options further intensified concerns among investors.
Roaring Kitty’s ownership of 120,000 call options with a $20 strike price and a June 21 expiration date drew attention from both traders and market analysts. The surge in trading volume on these contracts, combined with the sharp decline in price during the session, raised suspicions of his involvement. The open interest on the calls decreased to 111,818 contracts, indicating potential selling activity by Roaring Kitty. More than 47,000 contracts had changed hands by Thursday, adding to the speculation surrounding GameStop’s future trading dynamics.
The disruption at GameStop’s shareholder meeting not only highlighted the challenges of handling overwhelming interest in virtual events but also underscored the ongoing volatility and speculation surrounding meme stocks. The role of influential traders like Roaring Kitty continues to be a focal point for market analysis and investor sentiment, shaping the narrative of GameStop’s financial trajectory. As the company navigates through these complexities, it faces both opportunities and risks in the ever-changing landscape of online trading and retail investor activism.