Key Takeaways
- GameStop shares surged as much as 13% during Monday’s after-hours session following cryptic posts from Roaring Kitty’s account, only to reverse sharply after the posts vanished.
- Chewy shares experienced similar volatility, climbing 3% before giving back gains.
- Market watchers are buzzing about a potential GameStopāeBay combination after Ryan Cohen scrubbed GameStop from his bio while eBay surfaced on GME’s investor relations website.
- The video game retailer submitted SEC paperwork to expand authorized Class A shares from 1 billion to 2.5 billion, mentioning possible acquisitions.
- Reports indicate GameStop has floated a $56 billion acquisition proposal for eBay, with Cohen touting $2 billion in yearly cost reductions.
Shares of GameStop experienced dramatic swings during Monday’s after-hours session, sparked by fleeting activity on Keith Gill’s social media profileāthe investor widely recognized as Roaring Kitty.
The video game retailer’s shares climbed as high as 13% before surrendering those advances and turning negative. The dramatic reversal occurred after the postsāone featuring a feline image, another depicting Pepe the Frog donning Roaring Kitty’s iconic red headbandādisappeared around 5:40 p.m. Eastern time, within an hour of their original appearance.
Chewy shares mirrored this volatile pattern, advancing up to 3% before eliminating the gain. The pet supplies retailer was established by GameStop’s current CEO Ryan Cohen.
This marks another instance of Gill’s social media presence influencing market behavior. A mysterious post in late 2024 propelled GameStop higher and prompted a trading halt due to volatility. AMC Entertainment experienced similar price action during that event.
eBay Merger Chatter Intensifies
The volatile after-hours movement occurred amid mounting speculation regarding a potential GameStopāeBay combination.
Market participants observed that Cohen had eliminated GameStop from his social media profile. Simultaneously, eBay materialized on GameStop’s investor relations section. No official confirmation of merger talks has emerged from either corporation.
The investor relations section update connects to regulatory documents concerning GameStop’s reported $56 billion acquisition approach for eBay. Should it materialize, the transaction would rank among the most ambitious takeover bids ever launched by a company of GameStop’s market capitalization.
Cohen’s proposal reportedly emphasizes $2 billion in yearly cost efficiencies achievable within twelve months of deal completion, with Cohen positioned to lead the merged entity.
Stock Authorization Increase Stirs Interest
Also on Monday, GameStop submitted documentation to the SEC seeking to boost its authorized Class A shares from 1 billion to 2.5 billion. The filing states this expansion would facilitate acquisitions, capital raising initiatives, and organizational restructuring.
Since advancing the eBay proposal, Cohen has openly challenged eBay’s financial trajectory, highlighting declining operating profitability and expanding expense levels.
Skepticism exists among some market observers. Michael Burryāthe legendary investor famous for his “Big Short” wagerāhas liquidated his GameStop holdings, prompting concerns about the company’s expanding debt obligations.
Anthony Pompliano, who leads 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 climbed more than 24%. GameStop stock has advanced over 15%.
Get 3 Free Stock Ebooks
Discover top-performing stocks in AI, Crypto, and Technology with expert analysis.
- Top 10 AI Stocks - Leading AI companies
- Top 10 Crypto Stocks - Blockchain leaders
- Top 10 Tech Stocks - Tech giants
