GameStop has a 1-up on the stock market.
Getty Images
GameStop stock the price seems to be on a roller coaster ride again. The stock rebounded on Thursday morning, after a massive sale when the markets opened at a peak of $ 184. This happened after a big day, with stocks rising more than 100% on Wednesday.
This latest volatility in GameStop’s stock price came after news on Tuesday that Jim Bell, the retailer’s chief financial officer, is stepping down. 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 to be meaningless, it happened at a time when GameStop’s stock started to rise.
Although the reason for the stock price jump is not yet clear, hedge funds that have taken short positions on GameStop shares in the hope that their value will continue to fall may have lost their bets. Short sellers lost $ 818 million in bets placed against the company, according to financial analysis firm Ortex 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. Since continued to fall, losing much of its value.