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This morning, GME opened at $ 44.70 a share, and until a few hours ago it looked like today would be another normal day. Then, just before 4 p.m. ET, it started climbing again, increasing faster and faster in the last hour of trading. Trading was halted several times in the home stretch due to its rapid rise, and by the end of the day GME had closed at $ 91.70 per share.
But somehow it’s not done. GME has since continued to climb in after-hours trading, fluctuating wildly near $ 200 per share at points.
Why are we doing this again? It’s hard to say. Skimming the r / wallstreetbets subdirectory doesn’t reveal much for sure, and Reddit was down for a period earlier in the day when it started, although it is not known whether these events are really related. It is clear that many investors are as surprised as anyone, although they are also delighted.
The most obvious theory is that this is linked to the announcement of the departure of GameStop CFO Jim Bell yesterday, although that doesn’t fully explain what’s going on. Bell’s resignation was revealed late yesterday, and if that had been the sole motivator, the stock likely would have risen after hours yesterday and opened much higher. Instead, it remained stable until the end of trading the next day.
Another theory circulating is that it was fine because of Bell’s departure, but with a different context. A source talk to Forbes Last night, he indicated that Bell’s resignation was not exactly his idea and that the board had lost faith in Bell to make the e-commerce changes necessary to save the company. This would be consistent with other additional information about the situation at GameStop, such as a recent refresh of the table to include longtime militant shareholders and Chewy’s CEO Ryan Cohen – who is hugely popular among the short-term crowd for his success in previous ventures. And that would certainly explain why GameStop was willing to part ways with Bell when his contract called for a severance package of $ 2.8 million.
But the strangest theory there is that the soaring is due to this tweet from Cohen, depicting … just a McDonalds ice cream cone and a frog emoji.
– Ryan Cohen (@ryancohen) February 24, 2021
What does this tweet mean? Who can say? But Cohen has been a major figure in WallStreetBets’ short-selling frenzy simply because of his board membership and success in previous ventures. He asked the board for a more dedicated and focused ecommerce strategy, and while he’s been clear on the exact details of what that would entail so far, it seems to align with what others are doing. activist investors of the company. It’s unclear what Ice has to do with all of this, but it’s worth noting that Cohen doesn’t tweet that often, and several of his recent tweets point in this direction – an image and an emoji. For example, at the beginning of January, it tweeted an image of a blockbuster and a “poo” emoji.
Deeper meaning or not, it’s possible that Cohen’s tweet combined with Bell’s situation may have been enough to convince a vibrant Reddit community of amateur investors to buy shares again. But anyway, at least for now, GME Reddit investors are back to encouraging others to keep their “diamond hands” – holding on to the title for as long as possible, waiting for even higher prizes. high.
Rebekah Valentine is a journalist at IGN. You can find her on Twitter @duckvalentine.
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