GameStop Corp’s (GME) shares surged in Thursdays’ premarket trading due to retail investors reviving the jump in Reddit-favorite stocks and lining it up for a $7.6 Billion valuation over 2 days.
Shares rose as high as 83% to $168 on the NYSE.
Other favourites stocks of traders on Reddit’s forums are:
- Koss Corp. which jumped 78%
- AMC Entertainment Inc. which jumped 12% premarket and 59% in the first 3 days of the week
- Blackberry Ltd. which jumped 5.4% in early trading
- Nokia Oyj wich jumped 7.7% in Europe
The gains were helped by a last hour rally on Wednesday 24th Feb that gave GameStop its largest jump since 29th Jan – the same day that Robinhood Markets banned it and 49 other stocks at the peak of the trading frenzy. The jump has vastly increased trading volumes in the “meme stocks” and even sparked an outage on Reddit’s WallStreetBets forum, the center of the volatility in January.
As of 9:17am EST today shares of GameStop have jumped to $171.17
Reddit’s strong hold on early morning trading was clear with more than 5.4 million GameStop shares changing hands. Besides GameStop, (cinema operator) AMC, (cannabis supplier) Sundial Growers Inc. and (clothes maker) Naked Brand Group Ltd. were some of the 5 most active stocks before normal strading started.
Many explanations as to what caused the rallies yesterday have started to circulate. The GameStop frenzy seems to have started again after news reports late Tueday that their CFO Jim Bell was pushed out after a disagreement over strategy – making way for an exec more in tune with the vision of investor and board member Ryan Cohen who was the co founder online pet food website Chewy.com His addition to the board in early January started the first flurry of the stock – gaining the attention of WallStreetBets.
Neil Wilson, the chief market analyst at Markets.com, said the sudden jump in GameStop late on Wednesday could possible have been started by a tweet from Ryan Coven, who posted a pic of a McDonald’s ice cream at 1:57pm EST – about 2 hours before the cash equity close.
“Does it signal Cohen will fix the company the way McDonald’s finally fixed its ice cream machines? or could it be even more cryptic and related to a new website that tells you in real time whether your local McDonald’s has a functioning ice cream machine? Who knows, stranger things have happened. It looks like the Reddit crowd are at it again,” Neil said in a note.