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GameStop stock went through some ups and downs on Thursday before closing at $ 108.73 per share, an 18% gain for the day. This was after the stock jumped more than 100% on Wednesday.
The reason for the jump remains unclear, but the latest volatility in GameStop’s share price came after news that Jim Bell, the retailer’s chief financial officer, is resigning. Bell will resign from GameStop on March 26, the company said in a statement. Diana Jajeh, GameStop’s current senior vice president, will serve as interim CFO while the company seeks a permanent replacement.
Bell did not leave the company willingly, according to Business Insider. He was reportedly expelled by the board for lack of faith and an initiative to reshape the company by Ryan Cohen, co-founder of Chewy, who made a major investment in the video game retailer last year.
Cohen tweeted a photo of an ice cream cone Wednesday. Although it seems meaningless, it happened around the time GameStop’s stock started to rise.
Hedge funds that took short positions on GameStop shares in the hope that they would continue to decline in value may be looking for aspirin. On Wednesday, short sellers lost $ 818 million in bets placed against the company, financial analysis firm Ortex said on Thursday.
GAMESTOP SHORT SELLERS ESTIMATED TO HAVE LOST $ 818 MLN ON THEIR BEARISH BETS ON WEDNESDAY – ORTEX
– * Walter Bloomberg (@DeItaone) February 25, 2021
THE video game retailer saw its stock price soar in late January, thanks to a push from traders on subreddit r / WallStreetBets, peaking at around $ 480. continued to fall, losing much of its value.