GameStop's stock skyrockets 29% to continue rally and register biggest gain in over a year

By James Rogers

Shares of videogame retailer and original meme stock GameStop surged on no apparent news this week

GameStop Corp. shares ended Friday's session up 29.1% to continue their rally and register their biggest daily percentage gain since March 22, 2023, when they rose 35.2%.

The stock (GME) ended Thursday's session up 17% on no apparent news as the videogame retailer and original meme stock snapped a three-day losing streak.

Short interest as a percentage of GameStop's public float of shares is 22.5%, according to the latest exchange data. GameStop shares surged on trading volume of 36.17 million shares, well above their average 65-day trading volume of 4.64 million shares.

Related: GameStop stock climbs 17% for biggest gain since November, sparks memories of 'crazy' meme volatility

The stock's performance has been attracting plenty of attention on social media.

"Someone wanna explain this one to me," wrote @amitisinvesting on X, formerly known as Twitter. "$GME Gamestop +45% this week. They don't even do an earnings call."

Stocktwits, a social-media platform for stock investors and traders, noted that GameStop was up 35% since a "call-out" by X user @ACInvestorBlog on April 25.

"Unusual call options activity recently," wrote @ACInvestorBlog. "If it breaks 10.94 could see a nice run from current levels."

Related: If you have these skills, GameStop's Ryan Cohen wants to hear from you

GameStop shares ended Friday's session at $16.47 - their highest close since Jan. 3, when the stock ended the session at $16.69.

The stock's performance this week also fueled memories of the 2021 meme-stock frenzy that sent shares of GameStop and AMC Entertainment Holdings Inc. (AMC) skyrocketing.

In March, GameStop said that it is cutting jobs in an attempt to boost profitability. GameStop missed analysts' top- and bottom-line estimates in its recent fourth-quarter results, prompting analyst firm Wedbush to warn that it could meet its demise before the end of this decade.

Related: GameStop's demise could come later this decade, analyst says

The company also saw major leadership changes last year. GameStop fired CEO Matthew Furlong in June and announced that its board had elected activist investor Cohen as executive chair. Cohen was named CEO in September, the latest chapter in his attempt to breathe new life into the company.

In December, GameStop's board of directors approved a new investment policy that lets the company invest in equity securities, among other investments. GameStop's board gave Cohen the authority to manage the investment portfolio.

In GameStop's latest annual report, filed with the U.S. Securities and Exchange Commission earlier this week, the company said that its board unanimously authorized revisions to the investment policy on March 21.

"In accordance with the revised investment policy, the board of directors has delegated authority to manage the company's portfolio of securities investments to an investment committee consisting of the company's chairman of the board of directors and Chief Executive Officer Ryan Cohen, and two independent members of the board of directors, together with such personnel and advisors as the investment committee may choose," GameStop said.

-James Rogers

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05-03-24 1958ET

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