GameStop (NYSE:GME) remains one of the most closely-watched stocks in the market. Shares of GME stock have been on a rollercoaster ride over the past few weeks, as Keith Gill (also known as Roaring Kitty) has stepped into options contracts dated a week out in this stock. While the stock has surged and plunged on its pre-announced earnings and share issuance last week, GameStop shares are moving higher today, up more than 12% in early afternoon trading.
This move appears to be a direct result of news that the company’s management team has postponed its annual meeting today due to technical difficulties. Reportedly, GameStop’s meeting website crashed multiple times. Some are attributing this to the reality that the company’s following is roaring back alongside the meme king himself, Keith Gill.
With Mr. Gill’s options expiring next Friday, anticipation around what his positions could be worth, and what GameStop may have planned for the meeting, is driving shares higher. This delay could mean multiple things, but let’s dive into what the market is pricing in right now.
GME Stock Surges on Delayed Shareholder Meeting
At the time of writing, it appears GameStop is assessing when it may hold its meeting and is taking steps to fix server outages tied to a heavy traffic load today. With uncertainty around the meeting and its content, there are differing viewpoints on what this delay could mean.
GameStop’s management team did indicate that its annual shareholder meeting will allow investors to vote on executive compensation, board members, and who will be on the company’s audit committee and registered public accountant. Many also expect some vibrant commentary from the company’s CEO, Ryan Cohen, whose remarks drove significant volatility in the stock the previous time around.
Notably, there has also been some speculation that Mr. Gill may already be lightening up on his current options positions, given recent sales data that many are watching closely.
In any case, the interest we’re seeing in GameStop right now indicates retail investors are back in the game. We’ll have to see what happens to Mr. Gill’s positions and whether he chooses to exercise a portion or all of the shares that become available at his designated price. I expect to see plenty of volatility in GME stock moving forward.
On the date of publication, Chris MacDonald 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.
