(Reuters) -GameStop and other so-called meme stocks rose on Thursday, as investors piled into stocks after a slide in the previous session.
Shares of video game retailer GameStop closed up 52.7% at $ 183.75 with strong trading volume after rising to $ 187.50 at the end of the session.
The company’s shares were down 8.2% for the week following losses following a lackluster earnings report Tuesday night during which the company revealed that it was evaluating the possibility of a share sale. They are up 875% so far this year, although they are still far from their record of $ 483 reached at the end of January.
The company has benefited from the push from retail investors, often on online forums like Reddit’s popular WallStreetBets, to boost the prices of stocks they believe are undervalued.
Investors have also been on the lookout for the efforts of billionaire investor and Chewy Inc co-founder Ryan Cohen, who sits on GameStop’s board of directors, to transform the retailer into an e-commerce startup that can take on big-box rivals like Target. Corp and Walmart Inc.
GameStop, which added three new directors, including Cohen, to its board in January as part of a deal, said in its quarterly filing here Tuesday that it expects eight incumbent board members to step down at its 2021 annual meeting in June. The company said it has not yet determined who it would nominate to replace the outgoing board members.
CFRA analyst Camilla Yanushevsky said some investors believe the plan for a board review is a promising sign for GameStop’s efforts to expand e-commerce.
“If Ryan Cohen can fill the board with his allies, people think it can lead to a transformation at GameStop. That is what is the case of the bull, ”he said.
Meanwhile, shares in other meme stocks, such as headphone maker Koss Corp, were up as well. Koss shares closed up 57.1% at $ 25.80 with a trading volume around 4.7 times the 10-day moving average. The stock was down nearly 22% on Wednesday.
Movie theater operator AMC Entertainment Holdings Inc closed up 21.3% at $ 10.94 after falling 36% in the last four sessions.
Reporting by Sinéad Carew; Editing by Alden Bentley and David Gregorio