GameStop (GME) stock experienced a significant downfall of more than 40% on Friday amidst highly volatile trading, coinciding with the much-anticipated YouTube livestream by retail investor Keith Gill, also known as "Roaring Kitty." Over half a million viewers tuned in for Gill's first live appearance on the channel since his influential videos and posts catapulted the meme stock rally in 2021.

The livestream began with adorable video clips of kittens playing, interspersed with shots of Gill himself. He then appeared in front of a screenshot of a Yahoo Finance stock page displaying GameStop's information. While addressing the viewers, Gill emphasized that nothing shared during the stream constituted financial advice.

During the livestream, Gill affirmed that the screenshots of his GameStop holdings, which had been circulating on social media earlier in the week, were genuine and belonged to him alone. He explicitly stated that he was not collaborating with any hedge funds. Despite the market's anticipation, Gill did not disclose any new positions or investments.

Trading for GameStop stock was highly volatile, leading to over a dozen halts throughout Friday. Prior to the livestream, the stock had already begun plummeting due to quarterly results that fell short of analyst estimates and the announcement of an upcoming stock sale.

GameStop's adjusted loss for the first quarter was recorded at $0.12 per share, in contrast to the estimated loss of $0.09. Net sales also saw a decline of 29% to $882 million, missing analyst estimates of $995.5 million. Wall Street had originally expected the quarterly results later in the month. Additionally, the company filed to sell up to 75 million additional shares, following the successful sale of 45 million shares the previous month, generating approximately $930 million in proceeds.

These developments closely followed "Roaring Kitty's" announcement of the livestream, which led to a 47% surge in GameStop's stock during the previous trading session. The fervor surrounding Gill's return to social media was met with calls for an investigation into his activities.

Notably, deepening the scrutiny around Gill's investments, a screenshot shared by Reddit user "DeepF***ingValue" (believed to be linked to Gill) after market close on Thursday displayed a portfolio value of $586 million, including GameStop stock holdings and unexercised options positions.

Gill's reemergence across social media channels has sparked a rollercoaster ride for GameStop shares over the past month. Some analysts are questioning the legitimacy of his actions and suggesting they warrant further investigation. Earlier this week, the top securities regulator in Massachusetts confirmed that a probe into "Roaring Kitty's" GameStop trades has been initiated.

The Wall Street Journal also reported that executives at Morgan Stanley's E-Trade platform were considering discontinuing an account tied to the screenshot of Gill's alleged portfolio. GameStop shares subsequently fell approximately 5% on the following day.

Although reminiscent of the retail frenzy witnessed three years ago, analysts caution that the current meme stock resurgence is not comparable in terms of retail inflows, and they question the sustainability of this latest rally.

Disclaimer: This article is based on the information provided in the given text and does not constitute financial advice.