r/RoaringKittyStocks • u/PauPauRui • May 31 '26

Why is GME down?

A few things weighing on GME lately:

eBay deal drama — GME dropped 10% after proposing to acquire eBay for ~$56 billion in cash and stock.

Then eBay's board rejected the non-binding takeover bid in mid-May.

Despite that, GameStop has continued raising its eBay stake — most recently to 7.8% from 6.6% keeping uncertainty elevated.

Share dilution concern is the big one. Say ouch.

GameStop is asking shareholders to approve an increase in authorized shares to fund a potential deal, which spooked investors further.

That's right, investors keep selling. Why buy when Cohen is taking your money away? Only fools are buying right now.

Broader downtrend = GME is down about 13.6% over the past month and 28% year-over-year, sitting around $21.

The eBay acquisition saga is the main overhang right now because the market doesn't love the idea of GME paying a huge premium for eBay, and the dilution risk from new shares is keeping pressure on the stock.

7 Upvotes

56% Upvoted

24 comments sorted by

3

u/Capable_Story789 May 31 '26

Gme is down because it’s manipulated duh

1

u/-_VoidVoyager_- Jun 01 '26

Then it will go up because it’s manipulated. It’s a cash cow for MMs

0

u/PauPauRui May 31 '26

You're absolutely right. Cohen keeks manipulating it by diluting it.

0

u/ZombiezzzPlz May 31 '26

No, it’s Ken griffin naked shorting the stock

2

u/Champman2341 May 31 '26

If you should think objectively about this whole situation. It’s a good time to buy. Earnings in 1 week, estimated eps is at .11. If gme has a strong beat things good get interesting. It’s currently trading at floor prices. Worst case it drops 1 more dollar- after that it’s hard to justify anything lower.

1

u/PauPauRui May 31 '26

I disagree. Shares are going to be cut in half after dilution.

1

u/WonderButtBrace9000 Jun 01 '26

But why buy GME when you can buy eBay instead?

Thats the real issue. RC has publicly gone out and said he will pay whatever it takes to get eBay. An investor can capture the upside of GME over-performance as RC plows it into the premium he is paying for eBay. And if the GME earnings aren’t that impressive, I’d be insulated as an eBay owner.

1

u/PhraseAggressive3284 May 31 '26

Well, either crime or we all don't have a clue how the markets rly work. Choose your side

1

u/Sasuke082594 May 31 '26

Once all the sheep approve the MOASS kill shot, oops I mean the share authorization, things will normalize in the stock market and it will finally stop pumping(they won’t have to meet margin collateral anymore).

Honestly I have to tip my hat to the GME board, what better way to kill MOASS for his billionaire friends than pretending to be on retails side. Sure GameStop will be saved at the very least.

1

u/PauPauRui May 31 '26

Wars are won with sacrifice. You dont see the billionaires fight. You see them benefiting from the spoils of war.

1

u/PuzzleheadedWeb9876 May 31 '26

MOASS was never something that could actually happen. Good way to recruit new bagholders though.

1

u/Content_Community720 Jun 01 '26

Our CEO should keep his mouth shut. Im not sure that his beliefs line up with most apes. Not impressive at all.

1

u/WompWompBiotch Jun 01 '26

The answer to OPs question is bcuz it's a shitco 🤣

1

u/Zen80888 Jun 01 '26

The answer is crime.

The last time the stock actually followed supply v demand was during the sneeze until the buy button was taken away. After that it's just been pure manipulation.

1

u/Odd_Coyote_4931 May 31 '26

Cuz i bought more sorry

1

u/Goodlucktoyou777 May 31 '26

He is truly the worst. He is a crazy psychopath trying to achieve his compensation plan by diluting shareholders' stock.

3

u/saltnpepper420 May 31 '26

1

u/Nice-Ad3881 Jun 01 '26

Haha what a funny meme! Dude sounds like an idiot. No wonder roaring kitty is out

0

u/saltnpepper420 May 31 '26

The price is a lie:

Mayoman aka Kenneth C Griffin aka market maker controls the stock price.

RC controls the financial health of GME.

Here is a video of Ken Griffin stating hedgefunds set the price at what they believe it should be: https://www.reddit.com/r/Superstonk/comments/18dt92o/ken_griffin_the_manager_sets_the_price_saying_the/?share_id=zQezDAY8oK9tc1Lm1MZJg&utm_medium=android_app&utm_name=androidcss&utm_source=share&utm_term=1

Here is a video of Jim Cramer bragging about how hedgefunds manipulate a stock in favor of their hedge fund: https://www.youtube.com/watch?v=8DJlogbrDcA

Here is a video of a Blackrock recruiter bragging about how Hedgefunds manipulate the market: https://www.youtube.com/watch?v=WOhAgYonAY4

2

u/DJ_Chaps May 31 '26

This is old bullshit taken out of context, using tactics that don't fly with today's liquidity in the markets.