GameStop up 815% since the turn of year
The GameStop (NYSE:GME) story continues as the stock rose by 13% in morning trading before swinging to a 7.6% loss before the end of the day.
The video-game seller, that saw its share price rise to $348 as retails investors went head-to-head with Wall Street, before diving to around $40 in mid-February, has surged again in recent weeks against expectations.
“It’s fascinating because it seems that the Reddit army is doubling down and believing that the company is going to be able to shift their business and pivot to e-commerce,” said Edward Moya, senior market analyst at OANDA.
The day of volatility comes soon after analysts at Jeffries increased their price target to $175.
“Our thesis is that rebalancing sales away from video game software/hardware will deliver superior gross margins,” Jefferies said, suggesting that GameStop’s valuation could rival that of other online businesses “if the company successfully sheds its retail heritage and morphs into a digital commerce.”
GameStop, based in Texas, with 5,000 stores in ten countries, has seen an 815% rise in its share price since the turn of the year retail investors pushed the stock on the Reddit forum WallStreetBets.
