GameStop has a 1-up in the stock market.
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GameStop’s stock price appears to again be on a rollercoaster ride. Share rebounded Thursday morning following a massive sell-off when markets opened peaking at $184. This came after a big day as shares jumped by more than 100% on Wednesday.
This latest volatility in GameStop’s share price comes after news on Tuesday that Jim Bell, the retailer’s chief financial officer, is resigning. Bell will resign from GameStop on March 26, the company said in a release. Diana Jajeh, GameStop’s current senior vice president, will serve as interim CFO while the company searches for a permanent replacement.
Bell didn’t leave the company willingly, according to Business Insider. He was reportedly pushed out by the board over a lack of faith and an initiative to reshape the company by Ryan Cohen, co-founder of Chewy, who made a large investment in the video game retailer last year.
Cohen tweeted a picture of an ice cream cone Wednesday. While it seems to have no significance, it came around the time GameStop’s stock began to surge.
While the reason for the jump in stock price is still unclear, hedge funds who took short positions on GameStop’s stock in hopes of it to continue decreasing in value might have found themselves losing their bets. Short-sellers lost $818 million on bets made against the company according to financial analytics firm Ortex on Thursday.
GAMESTOP SHORT-SELLERS ESTIMATED TO HAVE LOST $818 MLN ON THEIR BEARISH BETS ON WEDNESDAY – ORTEX
— *Walter Bloomberg (@DeItaone) February 25, 2021
The video game retailer saw its stock price skyrocket at the end of January thanks to a push by traders on the subreddit r/WallStreetBets, reaching a peak of around $480. It has since continued to drop, losing much of its value.