Breaking News
0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

GameStop spikes as investors eye cryptic tweet by shareholder

Stock MarketsMar 04, 2021 10:25PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
2/2 © Reuters. FILE PHOTO: GameStop logo is seen near displayed stock graph in this illustration 2/2

(Reuters) - Shares of Reddit-darling GameStop (NYSE:GME) climbed on Thursday, rising more than 20% at one point in yet another unexplained move that left market watchers looking for a possible catalyst.

GameStop shares closed up 6.4% at $131.93 after earlier hitting $147.87, their highest since a surge in the heavily shorted stock late last month.

One analyst and some Twitter users pointed to a cryptic tweet by Ryan Cohen, a major shareholder of GameStop and founder of e-commerce firm Chewy (NYSE:CHWY).com, as a plausible reason for the move, although Reuters could not independently determine causation.

The late afternoon rally in GameStop began roughly around the time that Cohen tweeted what appeared to be a screenshot with the puppet dog advertising mascot of Pets.com, a famous casualty of the dotcom bubble two decades ago.

Cohen and GameStop had no comment on the tweet.

The tweet was "as good an explanation as any" for the sudden surge in GameStop shares, said Wedbush Securities analyst Michael Pachter in an emailed comment to Reuters.

"The core 'story' is that he will change the company and reverse its fortunes, so anything he does to reinforce that change... is going to move the stock higher," he said.

"I don't know if this was the actual catalyst today, but in such an ugly market, it makes sense."

Wall Street ended sharply lower on Thursday, leaving the Nasdaq down around 10% from its February record high.

A GameStop rally last month has also been linked to a Cohen tweet. A Feb. 24 surge in the company's shares began roughly around the time Cohen tweeted a picture of a McDonald's (NYSE:MCD) ice cream cone with a frog emoji.

The tweet left some GameStop bulls wondering online whether it was a veiled message that Cohen would fix GameStop's business, like the fast-food chain modernized its ice cream machines.

GameStop has become one of the most visible of the so-called meme stocks that are closely followed on sites such as Reddit's popular WallStreetBets forum.

The stock surged more than 1,600% in January after a wave of buying forced investors betting against the company's shares to unwind their positions, before paring most of those gains the following month.

Cohen's RC Ventures activist firm reached a settlement with GameStop in January, giving Cohen seats on the company's board.

GameStop spikes as investors eye cryptic tweet by shareholder
 

Related Articles

Burberry says recovery from COVID-19 accelerating
Burberry says recovery from COVID-19 accelerating By Reuters - May 13, 2021

LONDON (Reuters) -British luxury brand Burberry said on Thursday its recovery from the COVID-19 crisis accelerated through the year, enabling it to reinstate a dividend payment....

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (2)
Mike The Fonz
Mike The Fonz Mar 05, 2021 3:52PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
YawnCall me when it hits 29k
James Pattison
James Pattison Mar 05, 2021 9:09AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
The market will crash when these teo stocks squeeze... they will blame retail amd “reddit” investors... washinfton will regulate to protect the people who own them... and not a single reddit investor told these hedgefunds to take massively over leveraged short positions... but they “fixed the market...” as i buy and hold shares of both of these companies... and hold... and buy and hold somemore
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email