GameStop shakes off the slump in profits and climbs 50% to prevent the recent decline
GameStop had a five-day streak of bad luck on Thursday, with a significant spike as the video game company’s stocks rose more than 50%, showing that their wild swings are not over.
The stock slumped 33% in the previous session after the company reported disappointing fourth quarter results and failed to provide detailed information on its turnaround plans. GameStop also announced that it is considering selling more shares.
This marked the fifth consecutive negative day for the name after closing near $ 210 per share on March 17th. The stock rose 52.7% to close at $ 183.75 on Thursday.
There was no obvious news for Thursday’s price action. GameStop was the most famous “meme stock” popular with retailers on Reddit and other social media platforms.
GameStop is known to surge to over $ 400 per share in January before falling about 90% in less than a month.
Other popular Reddit trades also rebounded higher Thursday, with Koss up 57% and AMC Entertainment up 21%.
GameStop is a traditional brick and mortar retailer trying to get into e-commerce, run in part by board member and Chewy co-founder Ryan Cohen. Most recently, the company hired Jenna Owens, a former executive at Amazon and Google, as its new chief operating officer.
The company, which has largely remained silent about the sharp fluctuations in its share price this year, has taken on several leadership positions in preparation for the transition.