GameStop comebackEmerging from a five day slump, GameStop makes a swift comeback with a 52% increase on no apparent news.
GameStop had a rough week, and ended its fifth-straight negative day with a drop of 33% on its latest earnings report, disappointing investors without giving them any details on a turnaround plan for the meme stock after its crazy start to the year. In late January, a Reddit-led rally forced bearish investors to take back bets against the stock, leading to a surge of over 1,600% that month.
After closing near $210 on March 17, closing at $120 five days later must have gotten the attention of the company’s Reddit brigade, because GameStop wasn't the only meme stock that got a boost on Thursday. Shares of GameStop got a nice little boost on the back of hopes that the stock had been oversold, as did other shorted meme stocks. AMC Entertainment was up 21% and headphone company Koss was up 57%.
GameStop, a brick and mortar retailer, is trying to pivot into the e-commere space; and while the company has been pretty quiet about its rollercoaster of a year, there have been a bunch of executive shake-ups as the company prepares for the transition. The company has said eight board members will be retiring in 2021, and it’s added three new directors, including Ryan Cohen, as part of its plan to become the Amazon of gaming.
"It's fascinating because it seems that the Reddit army is doubling down and believing that the company is going to be able to shift their business and pivot to e-commerce,"
said Edward Moya, senior market analyst at OANDA.