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CNBC’s Jim Cramer questioned “are prices real” on Wall Street on Thursday, as he exasperatedly tried to explain GameStop’s 175% rally over the past two days.
“I think the average American right now is trying to figure out how do I find action that triples,” Cramer said. “Forget what you talk about with the FAANG. I want a triple.” “FAANG, an acronym coined by Cramer, stands for the big tech stocks – Facebook, Amazon, Apple, Netflix and Alphabet’s Google.
“That’s what people want. They want a triple. It’s not necessarily what we can deliver,” said the host of “Mad Money”. “Robinhood wants it. WallStreetBets wants it,” he added, referring to the popular online brokerage for young investors and the Reddit forum at the center of the GameStop saga.
Against the backdrop of the economic damage caused by the coronavirus pandemic, Cramer said in disbelief that GameStop is “what grabs America” and the investing public.
The online shopping frenzy around the video game retailer flared up again on Wednesday, when the share doubled after news of CFO Jim Bell’s departure next month. The stock climbed more than 70% on 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 these moves.
Ryan Cohen, a major investor in GameStop and co-founder of online pet food retailer Chewy, and GameStop himself have been calm during the outsized swings that began last month with a hedge fund short-squeeze of around 20 $ per share, which pushed the stock up to $ 2,300. % up to $ 483. GameStop fell below $ 50 in mid-February before Wednesday’s peak.
Cohen posted a cryptic tweet on Wednesday afternoon, and Cramer and the other “Squawk on the Street” hosts speculated Thursday morning as to what that might mean.
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