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GameStop’s stock has grown 1068% so far this year.
Justin Sullivan / Getty Images
GameStop
the stock fell suddenly on Monday morning, causing a brief halt due to volatility. The stock fell more than 15% to $ 223.00, rebounded, then fell even lower.
Shares of video game retailer GameStop (ticker: GME) this month have rebounded near their levels at the end of January this month. At the close, GameStop stock was down 17% to $ 220.13.
The company said last week that
Soft
(CHWY) co-founder Ryan Cohen and former Chewy executive Alan Attal have been joined by Kurt Wolf, managing member and chief investment officer of activist investor Hestia Capital Management, on a new committee consulting to transform GameStop into a technology company.
Cohen kicked off GameStop’s run by creating a roughly 13% stake in 2020 and urged the company to shift its focus more towards e-commerce offerings. He joined the company’s board of directors with two associates in January, sending parabolic GameStop shares in the weeks that followed. Analysts pointed to speculative options activity and the closing of some aggressive bearish bets by hedge funds.
Last month, GameStop announced the planned departure of CFO Jim Bell. Someone familiar with the matter said Barron’s when the company thought it was the right time and was looking for a new executive with a background in technology.
GameStop’s latest run began following a Congressional hearing on February 18 on trading in its shares and Robinhood. The audience included an appearance by Keith Gill, the YouTube personality known as RoaringKitty, who developed a sequel for his successful long standing in action GameStop dating back to 2019; Gill revealed in a February 19 article that he doubled his GameStop holdings.
While some analysts are bullish on the company’s prospects for a turnaround, the highest price target quoted by FactSet is $ 33. That analyst, Joseph Feldman of Telsey Advisory Group, pointed to valuation issues, despite his “high core expectations and expected multi-year benefits from the transformation.”
The company said it will release its fourth quarter fiscal year results next week. Like other so-called meme stocks favored by retail traders, these findings pose a risk to the company’s boom. That said, trying to call a near-term top for GameStop has been a crazy task, especially for short sellers facing an unlimited drop.
Write to Connor Smith at [email protected]
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