CNBC’s Jim Cramer on Thursday asked “prices are real” on Wall Street as he tried to exasperate to explain GameStop’s concentration of up to 175% in the past two days.
“I think the average American right now is trying to figure out how I can find an action that triples,” Cramer said. “” Forget what you are talking about with FAANG. I want a triple. ”FAANG, an acronym coined by Cramer, means big tech stocks: Facebook, Amazon, Apple, Netflix, and Google Alphabet.
“It’s what people want. They want a triple. That’s not necessarily what we can provide,” the Mad Money host said. “Robinhood wants it. WallStreetBets wants it,” he added, referring to the popular online brokerage among young investors and the Reddit forum at the center of the GameStop saga.
Against the backdrop of the economic damage from the coronavirus pandemic, Cramer said in disbelief that GameStop is “what catches the United States” and the audience it invests.
The online trade frenzy surrounding the video game retailer rekindled on Wednesday, when shares doubled following the announcement of next month’s departure of chief financial officer Jim Bell. Shares soared more than 70% on Thursday at one stage before halving the gain in volatile session.
Cramer said it seems unlikely that a change in CFO could be the catalyst for these moves.
Ryan Cohen, a major GameStop investor and co-founder of online pet food retailer Chewy, and GameStop himself have been silent during the oversized twists that began last month with a reduced hedge fund of $ 20 per share , which raised 2,300 shares. % up to $ 483. GameStop crashed below $ 50 in mid-February ahead of Wednesday’s rise.
Cohen posted a cryptic tweet Wednesday afternoon, prompting Cramer and the other “Squawk on the Street” hosts to speculate Thursday morning what it might mean.