money GameStop gains another 20%, extends five day rally
GameStop (GME) shares were surging more than 20% during Tuesday morning's session, extending a five day rally. The stock closed 41% higher yesterday after news that activist investor and board member Ryan Cohen would be in charge of the video game retailer's e-commerce initiatives.
The stock has recently seen big moves following any action Cohen takes. In late February shares surged following a cryptic ice-cream cone tweet from the co-founder of Chewy.
At 11:00 A.M Eastern on Tuesday, shares were trading around $240 each. The stock hasn't seen these levels since around February 1st when tumbling from its highs following a massive short squeeze.
In January Reddit's WallStreetBets members helped drive up prices as high as $483 each as some hedge funds and other short sellers were forced to cover their positions of the heavily shorted stock.
The GameStop saga was recently the focus of a congressional hearing where RobinHood CEO Vlad Tenev denied any collusion with hedge funds to disable buying of the video game retailer shares in order to stop the frenzy. The brokerage firm had restricted buying the stock on January 28. That day shares began plunging.The declines continued as restrictions were eased in the days that followed.
Citadel CEO Kenneth C. Griffin also took part in the hearing, along with Melvin Capital founder and CIO, Gabriel Plotkin, and Keith Gill, a YouTuber known as "Roaring Kitty" who has been bullish on GameStop for over a year.
Other recently shorted stocks which also saw gains on Tuesday, including Koss Corporation (KOSS) , Express (EXPR), and AMC Entertainment (AMC).
Ines covers the U.S. stock market. Follow her on Twitter at @ines_ferre
Here's why Tesla's stock tumbled after Battery Day, and why analysts are still bullish
Nikola calls short-seller report a 'hit job,' shares still fall
Apple analyst says record-breaking share price rally is about 'MOMO' not 'FOMO'
