Shares in video retailer GameStop leapt again on the back of news of an online sales push by the firm and rumours that its investor fans were set to return to the markets.
GameStop stocks rose for the fifth day running on Tuesday over speculation that small investors will pour their stimulus checks into the markets and reheat January’s “meme” stocks boom.
Its shares were up 15.1% to $223.70 pre-market, a day after the company tasked Chewy co-founder Ryan Cohen – a major GameStop shareholder and board member – with spearheading the company’s online sales efforts.
The latest rally follows wild movements in the share price since January, when it was at the heart of a social media-driven surge in a number of stocks that squeezed some hedge fund investors.
Shares in the company are still far below January peaks of more than $480 a share but the recovery may reduce losses for more of the investors who lost money on the stock’s subsequent collapse.
In Frankfurt, GameStop was trading about 24% higher and it was the second-most traded stock on trading platform Lang & Swartz after Siemens AG.
As of its last close, investors in GameStop’s US-listed stock have seen the value of their holdings surge more than 10 times compared to the start of the year.
- Reporting by Reuters