GameStop Shares Resume Rally, Seal Highest Close in 3 Weeks

Dow Jones06-06

Shares of GameStop Corp. resumed their rally Wednesday, with the stock climbing 19.1% after ending Tuesday's session down 5.4%.

The videogame retailer's shares $(GME)$ finished trading at $31.57, their highest close since May 15, 2024, when they ended that day's session at $39.55. GameStop's stock is now up four of the last five trading sessions.

Influential trader Keith Gill, also known as Roaring Kitty, last month sparked a new meme-stock rally that sent skyrocketing shares of GameStop and AMC Entertainment Holdings Inc. $(AMC)$, as well as a number of other stocks. GameStop and AMC were at the heart of the original meme-stock rally in 2021, which saw Gill rise to prominence.

AMC shares closed up 7.5% Wednesday after ending Tuesday's session down 0.4%.

Shares of GameStop surged again on Monday after a Reddit post from an account associated with Gill appeared to show him holding a big stake in the videogame retailer. A subsequent screenshot posted Monday showed Gill holding his position.

MarketWatch could not verify the authenticity of the screenshots. Gill also made a cryptic post on X, formerly known as Twitter, posting a green "reverse" card from the card game Uno.

On Tuesday, a spokesperson for Massachusetts Secretary of State Bill Galvin told MarketWatch that the state's securities division is "looking into" Gill's trading activities.

Citing people familiar with the matter, the Wall Street Journal reported this week that the Securities and Exchange Commission has been reviewing trading in GameStop call options around the time of the social-media posts from Gill. However, it could not be determined if the SEC was reviewing Gill specifically, according to the Journal.

Gill has not yet responded to requests for comment on the Massachusetts probe or the SEC's reported trading review.

GameStop shares are up 80.1% in 2024, while AMC's stock is down 15.9% and the S&P 500 index SPX is up 12.3%.

Gordon Gottsegen contributed.

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Comments

dr_balls
06-06
dr_balls
This play is not about business fundamentals although company has minimal debt, was profitable last quarter, has 2bn in cash as Victor said shorts never closed.... boom
Arun Varkey
06-06
Arun Varkey
Well I am not a big trader so don't listen to what I say but I just want to say one thing gaming is something that a wide range of people like that is from a small kid to grown ups I started gaming at the age of 12 and I am 45 years I still play so I don't think the gaming industry is small and there are multi millionaires in this industry can you believe just one win in in dota can get you 600 mill And I don't buy or hold any of its share just that I am too poor to afford it
- SullivanRrr:
  short gme to the hell!! haha
Boybabyrage
06-06
Boybabyrage
It is called a meme stock for a reason. People just follow blindly with what the Social Media star said. Looking at the business overall, I don't think it has this high value. Anyway, let's see. Haha. It's better to invest in those solid stocks like Apple , Microsoft and NvDa.
Guavaxf30
06-06
Guavaxf30
I am seriously concerned when people jusy follow whatever Roaring Kitty hints. Look at GME's business. It is equivalent to a video tape rental operator in the world of gamers. At a time when the industry is not cloud based. There is some serious pain coming if you do not know when to cash out. Disclaimer: I personally did a quick punt and got out after a day. Now I am on the dark side with GME.