GameStop shakes off falling earnings, soars 50% to break recent drop

A man watches GameStop on 6th Avenue on February 25, 2021 in New York.

John Smith | Corbis News | fake images

GameStop snapped a five-day losing streak with a significant rise on Thursday as the retail company’s shares jumped about 50% and showed their wild swings are not over yet.

The stock tumbled 33% in the previous session after the company reported disappointing fourth-quarter results and did not provide in-depth details on its restructuring plans. The company also revealed that it was considering selling more shares.

That was the fifth straight negative day for the stock after closing near $ 210 a share on March 17. The shares were trading close to $ 180 on Thursday.

There was no apparent news to boost the price action on Thursday. GameStop has been the highest-profile “meme stock”, which is popular with retailers on Reddit and other social media platforms.

GameStop soared above $ 400 a share in January before falling roughly 90% in less than a month.

Other popular Reddit trades also bounced higher on Thursday, with Koss climbing nearly 50% and AMC Entertainment gaining 24%.

GameStop is a traditional brick and mortar retailer trying to pivot into e-commerce, led in part by Chewy co-founder and board member Ryan Cohen. Most recently, the company hired Jenna Owens, a former Amazon and Google executive, as its new chief operating officer.

The company, which has largely been silent about the violent swings in its share price this year, has seen several executive roles change as the company prepares for its transition.


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