- GameStop rose as much as 25% on Tuesday, climbing above $US200 ($260) for the first time since February 1.
- The retailer’s shares have rallied in recent days as its transition to e-commerce business picks up steam.
- GameStop announced Monday that Chewy founder Ryan Cohen will head a committee tasked with leading the firm’s transformation.
- Watch GameStop trade live here.
GameStop climbed for a fifth straight day on Tuesday, signaling investors bullish toward the company’s overhaul are sticking to their guns instead of playing the stock for quick profits.
Shares rose as much as 25% and landed above $US200 ($260) for the first time since February 1. While the level remains well below the $US483 ($627) peak seen during January’s trading frenzy, shares are still up more than 900% year-to-date and about five times higher than where they stood mid-February.
The upswing follows larger gains made Monday after the company announced board member and Chewy founder Ryan Cohen will head a planning committee meant to usher in GameStop’s transformation. Cohen said in a November letter that the video-game retailer needs to focus on e-commerce business and lean less on physical locations if it’s to survive.
Steps taken since suggest GameStop heeded Cohen’s warning. The company hired Amazon veteran Matt Francis to serve as its new chief technology officer in February. The transition committee is now tasked with hiring leaders for its e-commerce fulfillment and customer care arms, as well as find a new chief financial officer.
The group will also seek opportunities for transforming GameStop into a “technology business” and creating value for shareholders, the retailer said in a press release.
The announcement marks a new phase to the mania around GameStop stock. Shares famously shot higher in January as casual investors uniting online flooded the market with buy orders.
That phenomenon has mostly died out, but participating Reddit traders have replaced their calls of “GME to the moon!” with research into how GameStop can thrive as an e-commerce firm. The crude commentary, memes, and bragging about claimed windfalls remain.
Even Keith Gill, arguably the group’s most famous GameStop bull, has cheered on the latest rally. The investor, known online as RoaringKitty and DeepF***ingValue, posted an update to his position on Monday. The one-day rally allegedly fueled an $US8.5 ($11) million profit, bringing his total gain to $US25.8 ($33) million.
Gill gained notoriety online for his early bullishness toward GameStop. Fame gained during the January surge led to his testifying to the House Financial Services Committee on the matter last month.
GameStop closed at $US194.50 ($252) on Monday. The company has two “buy” ratings, two “hold” ratings, and three “sell” ratings from analysts.