This morning, GME opened at $44.70 a share, and until a few hours ago it looked like today would be another normal day. Then, just before 4pm ET, it began creeping up again, rising faster and faster in the final hour of trading. Trading was halted multiple times in the final stretch due to its rapid ascension, and by the end of the day GME had closed at $91.70 per share.
But somehow, it's not done. GME has since continued to climb in after-hours trading, fluctuating wildly close to $200 per share at points.
Why are we doing this again? It's hard to tell. Skimming the r/wallstreetbets subreddit doesn't reveal much for sure, and Reddit was down for a period of time earlier today right around when this started kicking off, though it's unclear if those events are actually connected. It is clear that many of the investors there are as surprised as anyone, if also delighted.
The most obvious theory is that this is connected to the announcement of the departure of GameStop CFO Jim Bell yesterday, though this doesn't fully explain what's going on. Bell's resignation was revealed late yesterday, and if that were the only motivator, the stock likely would have gone up in after-hours trading yesterday and opened much higher. Instead, it remained steady until nearly the end of trading the following day.Another theory circulating is that it was indeed because of Bell's departure, but with different context. A source speaking to Forbes last night indicated that Bell's resignation wasn't exactly his idea, and that the board had lost faith in Bell to make the necessary e-commerce shifts to save the company. That would be in line with other supporting information about the situation at GameStop, such as a recent board refresh to include long-time activist shareholders and Chewy CEO Ryan Cohen -- who is very popular among the short squeeze crowd for his success in previous companies. And it would certainly explain why GameStop was willing to part with Bell when his contract stipulates a $2.8 million severance package.
But the weirdest theory out there is that the surge is because of this tweet from Cohen, depicting...just a McDonalds ice cream cone and a frog emoji.
— Ryan Cohen (@ryancohen) February 24, 2021
What does that tweet mean? Who can say? But Cohen has been a major figure in the WallStreetBets short-selling spree simply by virtue of his joining the board and having been successful in previous ventures. He has petitioned the board for a more dedicated and focused e-commerce strategy, and while he's been light on the exact specifics of what that would entail so far, it seems to jive with what the company's other activist investors are up to. It's not clear what the ice cream has to do with any of this, but it's worth noting that Cohen doesn't tweet all that often, and several of his recent tweets are along these lines -- an image, and an emoji. For example, in early January he tweeted an image of a Blockbuster and a "poo" emoji.
Deeper meaning or no, it's possible Cohen's tweet combined with the Bell situation could have been enough to get a buoyant Reddit community of amateur investors buying stock again. But regardless, at least for now, GME Reddit investors are back to cheering on others to keep their "diamond hands" -- holding onto the stock for as long as possible, waiting for even higher prices.
Rebekah Valentine is a news reporter for IGN. You can find her on Twitter @duckvalentine."though" - Google News
February 25, 2021 at 06:55AM
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GameStop Stock Is Surging Again, Though It's Not Entirely Clear Why - IGN - IGN
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