GameStop stocks skyrocket 100% again but analysts can’t work out why

GameStop stocks have once again skyrocketed on the US stock market more than doubling in a few hours, but analysts have no idea why.

The video game retailer saw its US share prices jump nearly 104 per cent yesterday evening, soaring a further 85 per cent in after hours trading to hit highs of $91.71 (£64) per share.

This was mirrored in GameStop’s Frankfurt listed shares as European traders joined the buying frenzy, seeing shares increase by a whopping 210 per cent yesterday.

Despite the meteoric rise in stock prices, analysts failed to determine any key reasons behind the surge, leading speculation and conspiracy theories to run rife.

Last month GameStop became the centre of a battle between Wall Street short sellers and independent traders.

This saw an army of independent traders from the Reddit community r/WallStreetBets drive up the companies share price nearly 2000 per cent, seeing stocks jump from $20 to around $350 in a matter of weeks.

READ MORE: Explained: GameStop vs Wall Street

After the stock surge died down, it was widely assumed GameStop’s volatility had subsided, but this fresh rally has left the market reeling.

Some suggested the surge was due to the announcement that GameStop’s chief financial officer Jim Bell would be stepping down at the end of March as the company focused more on online sales.

Others suggested a tweet from major shareholder Ryan Cohen of a McDonald’s ice cream with a frog emoji was a veiled message to investors that he was planning to fix the company.

While it’s not thought that Reddit traders were behind the recent surge, many have pointed to the fact that the forum went down for multiple hours as the stock was beginning to rise.

Click here to sign up to Charged’s free daily email newsletter



Leave a Reply

Your email address will not be published. Required fields are marked *

Fill out this field
Fill out this field
Please enter a valid email address.