A man looks at GameStop on 6th Avenue on February 25, 2021 in New York.
John Smith | Corbis News | Getty Images
GameStop broke a five-day losing streak with a significant increase on Thursday, with the retail company’s stock rising more than 50% and showing that its wild swings are not over yet.
The shares plunged 33% in the previous session, after the company reported disappointing results in the fourth quarter and did not provide detailed details about its recovery plans. The company also revealed that it is considering selling more shares.
This was the fifth consecutive negative day for shares, after closing close to $ 210 per share on March 17. The shares rose 52.7% to close at $ 183.75 on Thursday.
There was no apparent news that was driving Thursday’s price action. GameStop has been the most profiled “meme stock”, which is popular with retail merchants on Reddit and other social media platforms.
GameStop famously skyrocketed above $ 400 per share in January, before dropping about 90% in less than a month.
Other popular Reddit businesses also rose on Thursday, with Koss up 57% and AMC Entertainment gaining 21%.
GameStop is a traditional brick-and-mortar retailer trying to turn into e-commerce, led in part by Chewy board member and co-founder Ryan Cohen. More recently, the company hired Jenna Owens, a former Amazon and Google executive, as its new chief operating officer.
The company, which has been silent about the violent fluctuations in its share price this year, has seen several executive positions shift as the company prepares for its transition.