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GameStop’s stock is up an impressive $ 1,068% so far this year.
Justin Sullivan / Getty Images
GameStop
Shares fell suddenly Monday morning, leading to a short stop due to volatility. The stock fell over 15% to just $ 223.00, bounced back and then fell even lower.
Shares of video game store GameStop (ticker: GME) this month have rallied again near their late January levels this month. At close, GameStop’s stock fell 17% to $ 220.13.
The company said that last week
Tough
(CHWY) co-founder Ryan Cohen and former Chewy CEO Alan Attal were joined by Kurt Wolf, managing member and chief investment officer of activist investor Hestia Capital Management, in a new board committee focused on transforming GameStop into a technology company.
Cohen started GameStop’s run by building an approximately 13% stake in 2020 and urged the company to focus more on ecommerce offerings. He joined the board of the company with two employees in January, sending GameStop shares in the weeks that followed. Analysts pointed to speculative option activity and the closing of some aggressive bearish bets from hedge funds.
Last month, GameStop announced the planned departure of Chief Financial Officer Jim Bell. One person familiar with the matter reported it Barron’s when the company thought it was the right time and was looking for a new manager with a technical background.
GameStop’s final run began after a Feb. 18 hearing in Congress on stock trading and Robinhood. The hearing included an appearance by Keith Gill, the YouTube personality known as RoaringKitty, who has developed a following for his successful long position in GameStop stock dating back to 2019; Gill revealed in a February 19 post that he was doubling his GameStop holdings.
While some analysts are optimistic about the company’s outlook, the highest price target reported by FactSet is $ 33. That analyst, Joseph Feldman of Telsey Advisory Group, pointed to valuation issues, despite his “high fundamental expectations and anticipated multi-year benefits from the company. transformation “.
The company said it will report fiscal fourth quarter results next week. Like other so-called meme stocks favored by retailers, such results pose a risk to the company’s skyrocketing run-up. That said, trying to call GameStop a top short term has been a silly message, especially for short sellers dealing with unlimited downside.
Write to Connor Smith at [email protected]