UPDATED 21:22 EDT / FEBRUARY 24 2021

Gamestop APPS

GameStop shares surge in a repeat of the Reddit-powered pump in January

Shares in GameStop Corp. surged today as users of Reddit Inc.’s r/WallStreetBets forum pumped the stock again, a near-repeat of a similar pump in January.

GameStop shares, which opened regular trading at $46.05, well down from a high of $347.51 Jan. 27, rose 104% to close regular trading at $91.71. The price rise didn’t stop there, however, with GameStop then rising a further 83% in after-hours trading.

Amateur investors on r/WallStreetBets never fully stopped supporting the stock, but an announcement by the company may have also played a significant role in the new pump. GameStop announced that Executive Vice President and Chief Financial Officer Jim Bell will be resigning from the company on March 26.

The resignation of Bell may have been prompted by activist investor Ryan Cohen, who is pushing the company to implement a new turnaround strategy. With Bell leaving the company, analysts think that Cohen will use the opening to recruit someone with more experience in tech or e-commerce.

According to Investor Place, while GameStop shares are being driven by a retail investor-fueled short squeeze there are also legitimate hopes for a turnaround. “Cohen said that GameStop could one day rival Amazon with a better e-commerce business,” Investor Place noted.

Whether a possible turnaround for GameStop played a significant role in the pump of the company’s share price today is open to speculation. What is clear, a week after various players in the January pump testified before Congress, is that the new rise in GameStop shares is bound to attract further interest from regulators and politicians.

Along with a congressional investigation, it was reported Feb. 11 that both the U.S. Department of Justice and the Commodity Futures Trading Commission are formally investigating the pump of GME stock and the Securities and Exchange Commission is also reviewing the matter.

One notable difference this time around is that Robinhood Market Inc. didn’t suspend trading in the stock as it did in January. That said, automated triggers on the New York Stock Exchange did result in trading in GME shares being briefly halted twice after 3 p.m.

The last word, perhaps, should rest with r/WallStreetBets, where many celebrated the news.

Power to the players from r/wallstreetbets

Photo: GameStop

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