GameStop shares rose their highest level in more than a month on Tuesday as the video game retailer’s e-commerce added more fuel to Reddit’s favorite “memo inventory.”
Shares in the Texas company rose 26 percent to a high of $ 246.35 on their fifth consecutive day in the green.
Other stocks that WallStreetBets has been pumping up over the past few months also received a new boost on Tuesday. Shares of beleagured cinema chain AMC Entertainment rose nearly 16 percent during their session, while former smartphone maker BlackBerry jumped about 10 percent and telecommunications firm Nokia climbed 3.6 percent.
GameStop’s boom on Tuesday, building on the 41 percent gain that shattered shares Monday after it revealed that Coew founder Ryan Cohen has taken the reins to a digitally focused gambling industry.
The announcement created new hype around GameStop on Reddit’s WalldreetBets forum, which drove the struggling brick-and-mortar chain in the midst of a stock market revolution by driving its share price to $ 483 at the end of January.
“It’s still time to get on board GME … final preparations are only before you get on, but the gate is still open!” a Reddit user named jbver wrote in a Tuesday morning post in which a video of SpaceX’s massive Starship rocket appeared.
The VanEck Vectors Social Sentiment ETF – a newly formed fund that tracks popular online stocks – jumped 4.7 percent to an intraday high of $ 24.19, surpassing the broader market.
“A lot of these retailers are newer traders in the market, and they’re really going to focus on what they know,” Jake Wujastyk, chief market analyst at TrendSpider, told The Post. “If you’ve only traded GameStop and AMC, and if you’re a newer trader, that’s all you know, so that’s what you’ll naturally be drawn to once you start trading again.”
Cohen, an activist investor, helped light the fuse for the initial explosion of GameStop, as some of the Reddit crowd predicted he would turn the company around after joining the board in January. Retailers have pushed GameStop and other stocks to put hedge funds under pressure.
One of Cohen’s fans is Keith Gill, the trader known as ‘DeepF – ingValue’ on Reddit, who is credited with spearheading the GameStop rally.
Gill revealed in a Reddit report that the value of its GameStop share grew by $ 8.5 million on Monday as the shares rose.
GameStop’s boom on Tuesday took place when the Senate Banking Committee held a hearing on the recent boom in retail investments. Gill testified before a similar hearing before the Financial Services Committee last month.