- GameStop shares rose as much as 19% on Wednesday.
- The video-game retailer’s stock price has surged more than 550% in recent days.
- AMC Entertainment, Blackberry, and other meme stocks also jumped.
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The video-game retailer’s stock price soared as high as $US294 ($381) – a 550% increase in the space of 11 trading days. A key catalyst for the rally was the news that activist investor and Chewy cofounder Ryan Cohen will spearhead GameStop’s e-commerce transformation.
Despite their recent gains, GameStop shares are still down from their peak this year. They skyrocketed more than 2,500% in January, from about $US17 ($22) at the start of the year to an intraday high of $US483 ($627) on January 28.
The event also sparked criticism from top investors. Warren Buffett’s business partner, Charlie Munger, likened it to people gambling on racehorses. Similarly, “The Big Short” investor and former GameStop shareholder Michael Burry denounced the buying frenzy as “insane” and “dangerous.”
Here’s a chart showing the sharp increases and declines in GameStop’s stock price this year: