Text size
GameStop shares have risen an impressive 1.068% so far this year.
Justin Sullivan / Getty Images
GameStop
the stock fell sharply on Monday morning, causing a short stop due to volatility. The stock fell more than 15% to $ 223.00, returned and then fell even lower.
Shares of GameStop (ticker: GME) video game retailer this month rose back close to their levels at the end of January this month. At the close, GameStop shares fell 17% to $ 220.13.
The company said last week that
Chewy
CHWY co-founder Ryan Cohen and former Chewy executive Alan Attal have joined Kurt Wolf, executive member and investment director of activist investor Hestia Capital Management, in a new committee meeting aimed at transforming GameStop into a technology business.
Cohen started the GameStop leadership by building a share of about 13% in 2020 and urged the company to pivot more towards e-commerce offerings. He joined the company’s board of directors with two associates in January, sending parabolic GameStop shares in the coming weeks. Analysts indicated the activity of speculative options and the closing of aggressive bets from hedge funds.
Last month, GameStop announced the planned departure of chief financial officer Jim Bell. A person familiar with the matter said Barron’s when the company thought it was the right time and looked for a new director with a technological background.
The latest edition of GameStop began following a Feb. 18 hearing of Congress on trading its shares and Robinhood. The hearing included an appearance by Keith Gill, the YouTube personality known as RoaringKitty, who developed the following for his long position of success in the 2019 GameStop actions; Gill revealed in a February 19 post that he had doubled his GameStop holdings.
While some analysts are optimistic about the company’s turnover prospects, the highest target price listed by FactSet is $ 33. The analyst, Joseph Feldman of the Telsey Advisory Group, highlighted the concerns of the evaluation, despite “its high fundamental expectations and the projected benefits over several years of transformation”.
The company said it would report fiscal results for the fourth quarter next week. Like other so-called meme stocks favored by retailers, such results pose a risk to the company’s previous period. That being said, trying to call a short-term top for GameStop has been a silly task, especially for short sellers who face an unlimited disadvantage.
Write to Connor Smith at [email protected]