Why Is GameStop (GME) Stock Rocketing Higher Today

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Why Is GameStop (GME) Stock Rocketing Higher Today

Shares of video game retailer GameStop (NYSE:GME) jumped 8.1% in the afternoon session after CEO Ryan Cohen shared a photo with Michael Saylor, co-founder and chairman of MicroStrategy, the largest corporate holder of Bitcoin. The post has sparked speculation that GameStop may be planning a move into the crypto space. Such moves often resonate with its core audience of retail investors and traders.

The shares closed the day at $27.15, up 9.8% from previous close.

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GameStop’s shares are extremely volatile and have had 54 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.

The biggest move we wrote about over the last year was 9 months ago when the stock gained 119% as meme stocks soared (AMC Entertainment (NYSE:AMC) +14%, Newegg Commerce (NASDAQ:NEGG) +14%, Beyond (NYSE:BYON) +14%).

Gamestop’s stock rally also coincided with the return of the famous Wall Street Bets (Reddit stock trading forum) trader Keith Gill (known online as Roaring Kitty) to Twitter (also known as X.com) after three years. The moves likely point to the growing interest of retail investors in the stock market.

GameStop is down 10.8% since the beginning of the year, and at $27.36 per share, it is trading 43.9% below its 52-week high of $48.75 from May 2024. Investors who bought $1,000 worth of GameStop’s shares 5 years ago would now be looking at an investment worth $27,777.

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