GameStop Shares Explode Nearly 200% in New Rally
Shares of GameStop were heading higher again on Thursday after experiencing a colossal breakout on Wednesday.
The stock climbed as much as 85% in early trading on Thursday before being halted due to the volatility. The day before shares had closed up almost 104%.
So why the sudden breakout again for the struggling gaming retailer?
It was earlier this month that GameStop announced its chief financial officer would be resigning in March to help “accelerate GameStop’s transformation.” This may have given optimism to investors who believe in the long-term value of the retailer.
In a press release, GameStop said it “thanks Mr. Bell for his significant contributions and leadership, including his efforts over the past year during the COVID-19 pandemic.”
Bell became GameStop’s CFO back in June of 2019. That year, the company’s chief executive admitted GamesStop was in a “tough place.”
When asked by CNN Business about the reason for Bell’s departure, a GameStop spokesperson said the company is “not providing any further comments at this time concerning the announcement.”
It was about a month ago that GameStop shares had experienced a wild short squeeze causing shares to jump roughly 1,600% in just a matter of days. The gains were short lived as it quickly fell from a high of $350 to back under $100.
This short squeeze had been fueled by investors on the WallStreetBets on the Reddit page who thought the company was undervalued and wanted to squeeze the hedge funds who had shorted it.
If no permanent CFO replacement is found prior to Bell’s exit, GameStop plans to appoint Chief Accounting Officer Diana Jajeh as interim CFO.
Disclaimer: We have no position in any of the companies mentioned and have not been compensated for this article.