GameStop shares soars 85%, day after stock closed 104% higher
GameStop shares increased as much as 85% in early trading Thursday, following another blockbuster day for the stock. On Wednesday, the gaming retailer’s stock closed nearly 104% higher.
Few days after the company announced its chief financial officer would resign, investors gained interest in the stock once again. This would help “accelerate GameStop’s transformation,” which could fuel investors who believe in the long-term value of the retailer and its ability to shift from relying on physical stores to an e-commerce sales model.
On Wednesday, trading of the stock was hauled twice and its trading volume was roughly three times higher than the five-day average for the stock, according to data provider Refinitiv.
The surge came in after a wild GameStop trading frenzy caused its stock to jump around 1,600% in a few days, though it quickly fell from its highs around $350.
The surge was fueled by individual retail investors. Many from the Reddit page WallStreetBets, some of whom believed the GameStop was undervalued and others who wanted to squeeze hedge funds that had shorted the stock.
On Thursday, another “meme stock” named AMC, involved in the trading frenzy last month, also jumped around 20%. Koss Corp., which manufactures headphones, soared 80%. Clothing retailer Express (EXPR) also rose 12%.
