GameStop shakes off earnings slump, soars 50% to snap recent slide

Investing News

A man looks at GameStop at 6th Avenue on February 25, 2021 in New York.
John Smith | Corbis News | Getty Images

GameStop snapped a five-day losing streak with a significant surge on Thursday, as shares of the retail company rose roughly 50% and showed that their wild swings are not yet over.

The stock slumped 33% in the prior session after the company reported disappointing fourth-quarter results and failed to give in-depth detail about its turnaround plans. The company also disclosed that it was considering selling more stock.

That was the fifth-straight negative day for the stock after- closing near $210 per share on March 17. Shares were trading near $180 on Thursday.

There was no apparent news that was driving Thursday’s price action. GameStop has been the most high-profile “meme stock,” which are popular among retail traders on Reddit and other social media platforms.

GameStop famously rocketed above $400 per share in January before dropping 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 that is attempting to pivot into e-commerce, led in part by board member and Chewy co-founder 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 quiet about the violent gyrations in its stock price this year, has seen several executive roles turn over as the company gears up for its transition.

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