“GameStop Corp. shares soared in premarket trade, in a rally reminiscent of last month’s blockbuster gains,” WSJ writes.
Numbers To Consider:
- GME shares soared 75% in off-hours trading Thursday.
- It finished 104% higher Wednesday at $91.71, though it was halted twice for volatility.
- “Options activity tied to GameStop also hit the highest level in two weeks, with bullish contracts significantly outpacing bearish ones.”
It’s unclear what caused the surge. Gamestop said after market close on Tuesday that its CFO would resign near the end of March.
Other Meme Stocks Jumping:
- AMC improved by 15% premarket after closing 18% higher.
- Headphone-maker Koss Corp. flew up nearly 100% Thursday.
What’s Next For GME: “GameStop in recent months has come under pressure to focus more heavily on e-commerce. To help achieve that, Chewy Inc. co-founder Ryan Cohen, who holds a nearly 13% stake in GameStop through his investment firm RC Ventures LLC, was recently added to the retailer’s board.”
- Since the Reddit-driven short-squeeze leading to a peak value of $483 in late January, short interest has substantially diminished.
- Some investors, including Keith Gill (Reddit user DeepF–ingValue), are still betting on the shares.
I don’t know why this is happening other than a possible resurgence in virality on WSB and other outlets, and it’s impossible to tell what will happen to these stocks in the near-term.
For those who are holding deep losses from the $GME and $AMC saga, now might be a good time to start dollar cost averaging out of those positions and take advantage of a second wind. Just my opinions, not advice.