Key Highlights
- GME shares soared up to 13% during after-hours sessions Monday following mysterious posts on Roaring Kitty’s social media, before reversing when the content was removed.
- Chewy’s stock climbed as high as 3% during the same period before retracting its gains.
- Market observers are increasingly discussing a potential GameStop-eBay combination after Ryan Cohen eliminated GameStop from his social profile and eBay surfaced on GME’s investor relations site.
- The video game retailer submitted documentation to the SEC requesting authorization to expand Class A shares from 1 billion to 2.5 billion, referencing possible acquisition activities.
- The company has put forward a proposal to acquire eBay for approximately $56 billion, with Cohen projecting $2 billion in yearly cost reductions.
Shares of GameStop experienced dramatic fluctuations in extended trading hours Monday, sparked by fleeting social media activity from Keith Gill, the investor widely recognized as Roaring Kitty.
The video game retailer’s shares climbed as much as 13% before surrendering those advances and trading in negative territory. The turnaround occurred following the removal of the posts — one depicting a feline, the other featuring Pepe the Frog donning Roaring Kitty’s iconic red headband — which disappeared approximately at 5:40 p.m. Eastern time, within an hour of their original appearance.
Shares of Chewy experienced comparable movements, advancing up to 3% before completely unwinding the gain. Ryan Cohen, who currently serves as GameStop’s CEO, originally established Chewy.
This episode isn’t Gill’s initial instance of influencing market dynamics. A mysterious communication in the closing months of 2024 propelled GameStop significantly higher and prompted a trading volatility suspension. AMC Entertainment likewise experienced gains during that occurrence.
Acquisition Rumors Gain Momentum
The after-hours trading activity unfolded on a day already filled with chatter regarding a prospective GameStop-eBay combination.
Market participants observed that Cohen had eliminated GameStop from his social media profile. Simultaneously, eBay emerged on GameStop’s investor relations platform. Neither organization has validated any merger negotiations.
The investor relations platform modification connects to regulatory documents associated with GameStop’s offer to purchase eBay for roughly $56 billion. Should the transaction materialize, it would rank among the most substantial acquisition efforts ever undertaken by an enterprise of GameStop’s market capitalization.
Cohen’s proposal features $2 billion in yearly expense reductions within twelve months of finalizing a transaction, with Cohen personally assuming control of the merged entity.
Stock Authorization Request Intensifies Speculation
Also during Monday’s session, GameStop submitted paperwork to the SEC seeking to expand its authorized Class A shares from 1 billion to 2.5 billion. The organization stated the action is designed to facilitate acquisitions, capital raising, and corporate reorganization.
Following the submission of the eBay offer, Cohen has openly criticized eBay’s fiscal results, highlighting declining operational profitability and escalating expenses.
Not all investors are convinced. Michael Burry — the investment professional famous for the “Big Short” wager — has liquidated his GameStop holdings, prompting concerns about the firm’s expanding debt obligations.
Anthony Pompliano, CEO of Professional Capital Management, announced on X that he intends to conduct an interview with Cohen on Tuesday.
Year-to-date in 2026, eBay shares have appreciated more than 24%. GameStop stock has gained over 15%.
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