- GME shares rally sharply on Monday, up 30%.
- GME investors see Ryan Cohen leading its digital revolution.
- GME still the hottest retail stock for wallstreetbetts.
Gamestop (GME) hasn't gone away and as if to prove it is the king of retail stocks it shows back up on traders' screens for a 30% gain and counting on Monday.
Gamestop news
Now just in case, you have arrived at the stock market from a different planet, let's recap.
Gamestop is/was a struggling online video game retailer with shops located all around the world selling yes you guessed it, video games. Well as we all know retail is a struggling space as online continues to take over and this has been a trend for Gamestop too. As a result, Gamestop was heavily shorted by hedge funds as they bet that the price would decline further.
Gamestop's share price had been languishing below $10 for a considerable time and hit $2.57 by early April 2020 as the global pandemic raged. From here Gamestop staged an impressive recovery, in line with global stocks. GME shares just reached $20 before 2020 was done.
From here it gets interesting though as the power of retail suddenly became a force that could not be ignored by Wall Street. /wallstreetbets is a Reddit community for stockmarket talk and Gamestop started to trend heavily on the site early in 2021. Gamestop ran and ran and eventually exploded as talk of squeezing hedge fund short positions fizzed and exploded into mainstream consciousness. Gamestop shares traded up to nearly $500.
The Robinhood saga then tempered things with multiple brokers placing restrictions on purchases of Gamestop and other retail meme stocks. Gamestop shares collapsed down to below $100 in a matter of days.
Since then the shares have consolidated around the $60-80 range before exploding again last week to break up to $184.
Now again we have concrete news pushing the shares higher and reinvigorating retail traders. Gamestop is up 30% at $181 after Ryan Cohen is to lead Gamestop's transformation into the e-commerce space.
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