GameStop raises more than $2 billion by selling 75 million shares, capitalizing on meme frenzy

The stock dipped more than 1% in premarket trading Wednesday. The shares continued their roller-coaster ride this week, up 8% so far.

Wedbush GameStop analyst Michael Pachter estimated that the sale had an average share price of $28.50, implying that it coincided with the big sell-off during meme stock leader Roaring Kitty’s Youtube livestream last Friday.

GameStop shares dropped 40% on Friday after the company released its earnings report days ahead of schedule, reporting that sales declined 29% in the first quarter.

Roaring Kitty, AKA Keith Gill, hosted his first livestream in a few years that day, which seemed to exacerbate the sell off. Gill reiterated his previous investing thesis and offered little new reasoning behind his large stake. He revealed that he did not have any institutional backers and the GameStop positions he had shared in screenshots were his only bets.

Pachter has an underperform rating on GameStop and a 12-month price target of $11, which is more than 60% lower than Tuesday’s close of $30.49.