Skip to content
More from
Bloomberg
Fixed Income
relates to ECB’s Schnabel Sees German Inflation Climbing Above 3%
relates to Polish Banks Await Judgment on $31 Billion Franc-Loan Saga relates to Inflation Kicks Off Race for EU’s First Rate Hike This Year relates to Markets Threatened by Clowns With Rotating Planks relates to Gold Holds Near Three-Month High as Inflation, Fed in Focus relates to Transcript: Viktor Shvets on Inflation and the Next Financial Crisis relates to China Is Hot Again as Foreign Bond Buyers Yearn for Yield relates to China’s Credit Rebound May Spell Trouble for Huarong Investors relates to Amazon Borrows $18.5 Billion It Doesn’t Need in New Debt Sale relates to Cash-Strapped Pemex Delays Payments to Some Private Oil Partners relates to ECB’s Schnabel Sees German Inflation Climbing Above 3%
relates to Polish Banks Await Judgment on $31 Billion Franc-Loan Saga relates to Inflation Kicks Off Race for EU’s First Rate Hike This Year relates to Markets Threatened by Clowns With Rotating Planks relates to Gold Holds Near Three-Month High as Inflation, Fed in Focus relates to Transcript: Viktor Shvets on Inflation and the Next Financial Crisis relates to China Is Hot Again as Foreign Bond Buyers Yearn for Yield relates to China’s Credit Rebound May Spell Trouble for Huarong Investors relates to Amazon Borrows $18.5 Billion It Doesn’t Need in New Debt Sale relates to Cash-Strapped Pemex Delays Payments to Some Private Oil Partners relates to ECB’s Schnabel Sees German Inflation Climbing Above 3%
relates to Polish Banks Await Judgment on $31 Billion Franc-Loan Saga relates to Inflation Kicks Off Race for EU’s First Rate Hike This Year relates to Markets Threatened by Clowns With Rotating Planks relates to Gold Holds Near Three-Month High as Inflation, Fed in Focus relates to Transcript: Viktor Shvets on Inflation and the Next Financial Crisis relates to China Is Hot Again as Foreign Bond Buyers Yearn for Yield relates to China’s Credit Rebound May Spell Trouble for Huarong Investors relates to Amazon Borrows $18.5 Billion It Doesn’t Need in New Debt Sale relates to Cash-Strapped Pemex Delays Payments to Some Private Oil Partners
Markets

GameStop Defies Gravity Again With Rally Topping 100% Gain

Updated on
  • The Texas-based retailer soars 109% in five-day winning streak
  • Stock extends rally after Cohen tapped to lead ecommerce bid

GameStop Corp.’s latest winning streak has catapulted it to the highest in weeks as Chewy Inc. founder and activist investor Ryan Cohen continued to shake up operations at the video-game retailer, taking retail investors by storm.

Shares of the Grapevine, Texas-based company climbed 27% to $246.90, extending its winning streak for a fifth day. The gain follows Monday’s 41% climb after the company said Cohen would lead a new committee focused on its digital transformation.

Retail investors’ Reddit-driven frenzy has kept its shares afloat despite the broader market’s recent volatility and tech selloff. The stock has more than doubled over five days. While the Nasdaq 100 fell 11% from a record into a correction yesterday, it rebounded by 4% on Tuesday. Even so, GameStop remains far from its Jan. 28 intraday record of $483.

“It is interesting that GameStop has rallied as other momentum favorites are falling,” said Craig Birk, chief investment officer at Personal Capital. “For some, if they have losses in growth stocks, the quickest way to try to recoup them could be to find the most volatile stock.”

Stock extends recent rally after latest Cohen push

Markets have been gripped by volatility in recent weeks, led by declines in tech stocks. The index was having a respite on Tuesday and a group of 37 retail-mania stocks tracked by Bloomberg rose to its highest since February, but still far from a January high.

“It’s the return of every millennial traders’ favorite bet and it could last a little while longer until bearish bias for bonds returns,” Edward Moya, senior market analyst at OANDA, wrote.

The frenzy has drawn U.S. regulators to consider adding rules for everything from options trading to short-selling. In letters to Senator Elizabeth Warren, the Securities and Exchange Commission and the Financial Industry Regulatory Authority said they’re reviewing potential rules to fix regulatory gaps.

While GameStop remains a favorite for day traders, the momentum stock selloff has caught up with Cohen’s former darling Chewy, alongside the likes of pandemic winners Peloton Interactive Inc. and Zoom Video Communications Inc.

It is an inconvenient time for the online pet-products retailer that Cohen founded to take a tumble. The Dania Beach, Florida-based company has shed a third of its value from a Feb. 12 record -- that compares to a 371% surge for GameStop over that same stretch.

While Cohen’s push was applauded by investors, some skeptics like Wedbush analyst Michael Pachter said the latest update was expected ever since Cohen took a stake in the company. Instead he credited the stock’s return as a “Reddit Raider favorite” for the rally.

GameStop’s market value jumped to $17.2 billion amid momentum initially spurred by a Thursday tweet from Cohen. The apparent screenshot from a Pets.com television ad renewed chatter on Reddit and came one week after a picture of an ice cream cone tweeted by Cohen on Feb. 24 sparked a massive rally.

While Personal Capital’s Birk said the latest Cohen news appears positive for the stock, he but argued that “transformations take time and some fail.”

“It feels premature to assume GameStop’s challenges from a few months ago radically eased,” he said.

(Updates stock movement throughout.)