GameStop (NYSE:GME) stock is in the spotlight after Independent presidential candidate Robert F. Kennedy Jr. announced a $24,000 stake in the video game retailer.
Kennedy noted that he used proceeds from suing Monsanto to make the investment. In 2018, Monsanto agreed to pay $289 million in damages after its herbicide, Roundup, was alleged to contain cancer-causing chemicals that contributed to a man’s non-Hodgkin’s lymphoma diagnosis. Kennedy was an attorney in the case.
Meanwhile, Kennedy’s new investment is quickly making waves in the meme stock universe. In his post, Kennedy also mentioned Roaring Kitty and AMC Entertainment (NYSE:AMC), although he did not disclose a stake in the movie theater chain. He attributed pushing back against “predatory short selling” as one of the reasons for his GME stock position.
GME Stock: Robert F. Kennedy Discloses $24,000 Stake
The dollar value of Kennedy’s stake isn’t substantial, although his reputation as a presidential candidate is what’s driving the significance of the purchase. Kennedy is likely trying to use this purchase to resonate with more voters ahead of the upcoming November vote. He definitely needs this support, as his odds of winning are just 2.9%, according to OddsChecker.
Kennedy’s purchase comes after the return of Roaring Kitty, which contributed to GME stock soaring to a new 52-week high of $64.83. However, those gains were quickly relinquished, with GME trading in the low $20 range today.
GameStop itself put a halt to a rally after announcing on May 17 that it would issue and sell up to 45 million shares. The proceeds from the issuance will go toward general corporate purposes.
On the same day, the company also released its preliminary first-quarter earnings, which disappointed shareholders. GameStop expects Q1 net sales between $872 million and $892 million, signaling a drop from $1.237 billion year-over-year (YOY). Net loss is expected to be between $27 million and $37 million compared to $50.5 million a year ago. On top of that, GameStop expects cash and cash equivalents to tally in between $1.073 billion and $1.093 billion, down from $1.31 billion.
On the date of publication, Eddie Pan did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
