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

By James Rogers

GameStop shares snap a four-day losing streak Thursday and register their biggest daily percentage gain since November

GameStop Corp. shares ended Thursday's session up 17% as the videogame retailer and original meme stock registered its biggest daily percentage gain since Nov. 29, 2023, when it rose 20.46%, according to Dow Jones Market Data.

The stock also snapped a three-day losing streak on no apparent news. Short interest as a percentage of GameStop's (GME) public float of shares was 22.5%, according to the latest exchange data. GameStop shares surged on trading volume of 8.61 million shares, well above its average 65-day trading volume of 4.03 million shares.

On social media, the stock's performance fueled memories of the 2021 meme-stock frenzy that sent shares of GameStop and AMC Entertainment Holdings Inc. (AMC) skyrocketing.

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

"$GME ended up 16.96% on the day. That was fun to watch. It reminded me of the old days of crazy volatility," wrote @the_travis_b13 on X, formerly known as Twitter.

"I like to see old meme stonks waking up," wrote @YassineCorse on X.

AMC shares ended Thursday's session up 5.4%, outpacing the S&P 500 index's SPX gain of 0.9%.

Related: GameStop makes layoffs as videogame retailer looks for profitability boost

GameStop shares have fallen 27.2% in 2024 and AMC's stock is down 48.9%, compared with the S&P 500 index's 6.2% gain.

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.

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.

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

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 SEC 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," it said.

-James Rogers

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05-02-24 1813ET

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