Meme stocks recover, GameStop up for the fifth day
On Tuesday, the shares of GameStop jumped for the fifth day running, as news on the video retailer’s e-commerce strategy and speculation that small investors will pour stimulus checks into markets showed signs of reheating January’s “meme” stocks boom.
A day after the company tasked a major GameStop shareholder and board member, Chewy co-founder Ryan Cohen, GameStop shares were up 15.1% to $223.70 premarket with spearheading the company’s online sales efforts.
Since January, the rally follows major turns in the share price when it was at the heart of a social media-driven surge in several stocks that squeezed some hedge fund investors.
Shares in the company are yet far below January peaks of more than $480 a share but the recovery may reduce losses for more of the investors who lost money on the stock’s subsequent collapse.
In Frankfurt, after Siemens AG, GameStop was trading about 24% higher and was the second-most traded stock on a trading platform, Lang & Swartz.
As of its last close, investors in the U.S.-list of GameStop stock have seen the value of their holdings increase more than 10 times compared to the start of the year.
