CNBC’s Jim Cramer questioned Thursday that “prices are real” on Wall Street, desperately trying to explain GameStop’s rally of up to 175% in the past two days.
“I think the average American right now is trying to figure out how I can find a triple stock,” Cramer said. “‘Forget what you’re talking to FAANG. I want a triple.'” FAANG, an acronym coined by Cramer, stands for Big Tech Stocks: Alphabet’s Facebook, Amazon, Apple, Netflix, and Google.
“It’s what people want. They want a triple. That’s not necessarily what we can offer,” said the host of “Mad Money”. “Robinhood wants it. WallStreetBets wants it,” he added, referring to the online brokerage popular with young investors and the Reddit forum at the center of the GameStop saga.
Against the backdrop of the economic damage from the coronavirus pandemic, Cramer said in disbelief that GameStop is “what is trapping America” and the investing public.
The online-fueled trading frenzy around the video game retailer flared up again on Wednesday, when shares doubled following the announcement of CFO Jim Bell’s departure next month. The stock soared more than 70% again Thursday at one point before cutting the gain in half in a volatile session.
Cramer said it seems unlikely that a change in CFO could be the catalyst for such moves.
Ryan Cohen, a major GameStop investor and co-founder of online pet food retailer Chewy, and GameStop itself have been quiet during the skyrocketing swings that began last month with a hedge fund of roughly $ 20 a share, which sent the stock up 2,300. % to $ 483. GameStop fell below $ 50 in mid-February before Wednesday’s peak.
Cohen posted a cryptic tweet Wednesday afternoon, and Cramer and the other “Squawk on the Street” hosts speculated Thursday morning what it might mean.