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GameStop shares have risen an impressive 1.068% so far this year.
Justin Sullivan / Getty Images
GameStop
stocks fell sharply Monday morning, prompting a brief halt due to volatility. Shares fell more than 15% to $ 223.00, recovered and fell even lower.
Shares of this month’s GameStop (ticker: GME) video game store have risen again near near the end of January this month. At the close, GameStop shares fell 17% to $ 220.13.
The company said this last week
Chewable
Co-founder (CHWY) Ryan Cohen and former Chewy CEO Alan Attal joined Kurt Wolf, managing member and investment director of activist investor Hestia Capital Management, in a new board committee aimed at transforming GameStop in a technology business.
Cohen began managing GameStop by building a roughly 13% stake in 2020 and urged the company to pivot more toward e-commerce offerings. He joined the company’s board of directors with two associates in January, and sent GameStop shares parabolic the following weeks. Analysts noted the activity of speculative options and the closing of some aggressive bearish bets of hedge funds.
Last month, GameStop announced the planned departure of CFO Jim Bell. A person familiar with the matter has been told De Barron at a time when the company believed it was the right time and was looking for a new technology-trained executive.
GameStop’s final test began after a Feb. 18 hearing in Congress about the negotiation of its shares and Robinhood. The audience included an appearance by Keith Gill, the YouTube personality known as RoaringKitty, who has developed a sequel for his successful long position in GameStop shares dating back to 2019; Gill revealed in a February 19 post that he doubled his stakes in GameStop.
While some analysts are optimistic about the company’s investment prospects, FactSet’s highest price target is $ 33. This analyst, Joseph Feldman of Telsey Advisory Group, noted concerns about the valuation, despite its “high fundamental expectations and the projected multi-year benefits of the transformation.”
The company reported that next week it will report on fiscal results for the fourth quarter. Like other actions called memes favored by retailers, these results pose a risk to the company’s maximum rise. That said, trying to convene a short-term top for GameStop has been a mistake, especially for short sellers who have an unlimited downside.
Write to Connor Smith at [email protected]