Shares of GameStop rose rapidly and its operation was suspended twice for volatility before the closing bell on Wednesday. The games retailer’s shares were priced at $91.71 at close of business, almost 104% more than the day before.
Trading in the stock paused once around 3:40 p.m. Miami time, after rising nearly 74%, and again a little over 10 minutes later after gaining 104%. GameStop’s trading volume was about three times higher than the stock’s five-day average, according to data provider Refinitiv.
Less than an hour after the closing bell, the stock was on the move again, gaining nearly 90% in after-hours trading.
Already seen with GameStop?
What’s up? The surge comes about a month after a wild GameStop stock-trading frenzy sent its shares soaring around 1,600% in a matter of days, though they quickly fell from highs of around $350.
January was driven by individual retail investors, many of whom belonged to the WallStreetBets Reddit page, some of whom believed GameStop was undervalued and others wanted to squeeze hedge funds that had shorted stocks.
The jump also comes a day after the company announced that its CFO would step down next month to help “accelerate GameStop’s transformation,” which could boost investors who believe in the long-term value of the retailer and its ability to shift relying on brick-and-mortar stores to an e-commerce sales model.
Also other actions
AMC, another “meme action” involved in the frenzy last month, also jumped about 18% on Wednesday.
Redditors on WallStreetBets celebrated as GameStop skyrocketed. Posts on the subreddit included diamond emojis (a reference to holding a long-term stock) and headlines like “NEXT STOP IS THE MOON, BABY” with rocket emojis, representing the belief that the stock will continue its trajectory upward.
Some GameStop investors have publicly spoken about not selling their positions in the company during last month’s trading frenzy because they believe in its long-term potential.
Around 4 p.m., the entire Reddit site was down for many users, although the company did not identify the cause of the outage. In about half an hour, Reddit said it had identified the underlying problem and that “systems are beginning to recover.”
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