One month after theAffair Reddit-Robinhood, the GameStop title back in the spotlight again. In the session of February 24, the shares have doubled their value, gaining 103,94%. The race seems destined to continue even today: the title opened trading with a leap of 75% and is now traveling with an increase of more than 40%.
Triggering the purchases of Wall Street investors was the resignation of Chief Financial Officer Jim Bell, who will step down on March 26. According to rumors, it would be more correct than a resignation talk about "welcome", given that the decision would have been made by Ryan Cohen, co-founder of the Chewy group who invested in GameStop in order to speed up the company's online transition after years of red balance sheets caused by the fierce competition of online video games.
THE HISTORY OF GAMESTOP
GameStop is one physical store chain that sells video games, new and used. A business considered outdated by the vast majority of analysts who now considered the company almost doomed. So much so that the title had become the preferred prey of Hedge Funds who were trying to make money on it, through theand short sales.
A mechanism that went on for months, stopped only by the rain of purchases arrived by the Reddit traders which in the space of three weeks increased the value of the shares by more than 1700% to $400. “David is beating Goliath”, wrote newspapers around the world, reporting a story that even attracted the attention of the Federal Reserve and Congress.
Cohen's entry into the GameStop board was the basis of the interest of traders registered on the online forum Reddit.
A NEW RALLY?
After the January rally, the situation had normalized and GameStop stock had lost part of the gains accumulated in the previous days, falling to 45 dollars. February 24 has arrived a new exploit, with shares hitting $91 at the close and then exceeding $100 in the after hours. A few minutes after the opening on Wall Street, the stock reached a high of 170 dollars, before settling down around 135 dollars.
As happened in January, among other things, the GameStop effect is also involving AMC Entertainment (+18% yesterday, +13,5% today) and above all Koss who, after the +57% achieved on Wednesday, today rises by 59,5%.
