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Shares of Gamestop Surge Again for Their Highest Close Since December

May 10, 2024
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Thursday’s trading session saw GameStop Corp. shares surging by 13.1%, marking their highest close since December and signaling a renewed momentum for the video game retailer, famously known as an original meme stock.

Closing at $18.01, the stock's performance represented its strongest finish since December 28, when it concluded at $18.07. Additionally, GameStop shares recorded their most significant single-day percentage increase since May 3, with a climb of 29.1%.

Short interest in GameStop, measured as a percentage of the company's public float of shares, stands at 24.1% according to the latest exchange data. The surge in GameStop's stock was accompanied by heavy trading volume, with 25.39 million shares exchanged, significantly surpassing its average 65-day trading volume of 6 million shares.

The recent rally of GameStop has captured widespread attention across social media platforms, reminiscent of the meme-stock frenzy witnessed in 2021, which propelled both GameStop and AMC Entertainment Holdings Inc. shares to astronomical heights.

However, while GameStop experienced a notable surge, AMC's shares, which reported first-quarter results after the market close on Wednesday, ended Thursday's session with a decline of 4.4%, in contrast to the S&P 500 index's gain of 0.5%.

Earlier in March, GameStop announced job cuts as part of its efforts to enhance profitability. Despite these measures, the company fell short of analysts' expectations in its recent fourth-quarter results, prompting Wedbush, an analyst firm, to caution that GameStop might face challenges leading up to the end of the decade.

In December, GameStop's board approved a revised investment policy, granting Chief Executive Ryan Cohen authority to oversee the company's investment portfolio, which now includes equity securities among other assets. This policy revision was unanimously authorized by the board on March 21, as stated in GameStop's latest annual report filed with the U.S. Securities and Exchange Commission.

Cohen also disclosed last month that GameStop is actively seeking individuals with expertise in retail, supply chain management, and software engineering to bolster its team.

Furthermore, on Thursday, GameStop announced a partnership with Studio Distribution Services, a distributor of film and television media entertainment, to expand its offerings to include physical media such as DVDs in over 100 of its stores. This collaboration will also feature dedicated video wall space for films at 170 GameStop stores and the availability of titles on GameStop.com.

Despite the fluctuations, GameStop shares have registered a modest increase of 2.7% year-to-date in 2024, compared to the S&P 500 index's gain of 9.3% over the same period.

Cathy Hills
Associate Editor
Eric Ng
John Liu
Editorial Board
Bryan Curtis
Adan Harris
Managing Editor
Cathy Hills
Associate Editor

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