During GameStop’s annual shareholder meeting, chaos ensued as computer servers crashed due to overwhelming interest in the stream, according to a customer service representative for the hosting company. The meeting, set to start at 11 a.m. ET, was scheduled to be hosted on ComputerShare. However, many individuals trying to access the event were met with error messages stating that the page could not load. Posts on social media and CNBC’s own attempts to access the event confirmed the technical difficulties.
An unaffiliated YouTube stream reportedly showed the annual meeting beginning at 11:48 a.m. ET but immediately being adjourned due to the technical problems preventing stockholders from joining. GameStop assured users that they would provide an update on when the event would be rescheduled. Unfortunately, GameStop was unavailable for comment at the time.
The customer service representative for ComputerShare stated that the servers were experiencing a significant amount of issues due to the high volume of traffic generated by the meeting. The servers were not equipped to handle the surge in accounts accessing the event. The tech team at ComputerShare was working to resolve the problem, advising interested parties to try to log in every 5 to 10 minutes.
The technical debacle occurred amid a new meme stock craze that was sparked by the return of Keith Gill, also known as Roaring Kitty, to social media after being silent for over three years. Gill’s trading strategies and big bets on GameStop have attracted significant attention from retail traders. GameStop’s stock experienced a 14.4% surge during the volatile trading session.
GameStop revealed that it had raised over $2 billion through an equity sale, capitalizing on the renewed meme stock rally. The company stated that the funds would be used for general corporate purposes, potentially including acquisitions and investments. Traders closely watched Roaring Kitty’s actions, as his selling could impact the stock’s price.
In trading on Wednesday, a sudden sell-off of GameStop shares coincided with a spike in call options volume, particularly in contracts held by Roaring Kitty. Call options give buyers the right to purchase a stock at a predetermined price within a specific timeframe. The price of these options dropped significantly during the session as the stock price fell.
While it is uncertain if Roaring Kitty was behind the increased volume of call options trading, options traders speculate that his substantial holdings could indicate his participation in the market activity. The open interest on these contracts has declined, indicating potential selling activity from large contract holders like Roaring Kitty.
Overall, the technical issues faced during GameStop’s annual shareholder meeting highlight the challenges of managing high-volume virtual events. The market frenzy surrounding meme stocks and the involvement of influential traders like Roaring Kitty continue to drive volatility in the stock market. Investors and traders should remain vigilant and adapt to rapidly changing market conditions.
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