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GameStop’s stock went through some ups and downs Thursday before ending at $108.73 per share, a gain of 18% for the day. This came after shares jumped by more than 100% on Wednesday.
The reason for the jump is still unclear, but this latest volatility in GameStop’s share price comes after news 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. Though it seems to have no significance, it came around the time GameStop’s stock began to surge.
Hedge funds that took short positions on GameStop’s stock in the hope that it would continue decreasing in value might’ve been searching for some aspirin. On Wednesday, short-sellers lost $818 million on bets made against the company, financial analytics firm Ortex said 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’s since continued to drop, losing much of its value.