GameStop shares jump for the fifth day running Tuesday with a nearly 100% gain after Chewy's founder took over online sales and amid s...
GameStop shares jump for the fifth day running Tuesday with a nearly 100% gain after Chewy's founder took over online sales and amid speculation Reddit investors will pour their stimulus checks into stocks.
Shares of the retailer were up 23.5% to $239.80 in early trading, a day after the company entrusted leadership of its online sales efforts to board member and major shareholder Ryan Cohen, co-founder of the online pet retailer.
They've gained as much as 96% over the last five days and the resurgent rally lifted other stocks favored by retail investors on forums such as Reddit's WallStreetBets.
It follows wild gyrations in the share price since January, when it was at the heart of a social media-driven surge in a number of stocks that squeezed some hedge fund investors.
Market watchers have cited the U.S. Senate´s passage of a $1.9 trillion stimulus bill including $1,400 direct payments to Americans as one catalyst.
GameStop shares jump for the fifth day running Tuesday with a nearly 100% gain
They've gained as much as 96% over the last five days and the resurgent rally lifted other stocks favored by retail investors on forums such as Reddit's WallStreetBets
Once the aid bill is finalized and signed into law, the U.S. government should be able to start delivering $1,400 checks quickly, tax experts said.
Since January, GameStop shares have had several wild swings, one of the hottest meme stocks followed on social media.
Shares of AMC Entertainment another popular bet among retail investors, were recently up around 5%, headphone maker Koss Corp climbed 1% and Blackberry Ltd rose by around 2%.
Cohen, a major shareholder who has pushed Gametop´s move away from its brick-and-mortar model, joined the board in January shortly before a social media frenzy drove a meteoric rise in which GameStop shares surged more than 1,600%.
The flurry of buying drove hedge funds that had bet against the stock to unwind their short positions, a situation known as a 'short squeeze.' GameStop pared most of those gains the following month.
Shares of the retailer were up 23.5% to $239.80 in early trading, a day after the company entrusted leadership of its online sales efforts to board member and major shareholder Ryan Cohen, co-founder of the online pet retailer
Some analysts believe another short squeeze may be adding to the recent gains. Short interest in GameStop was valued at $2.58 billion, or 24.3% of the stock´s float on Tuesday, compared to $1.80 billion, 32.6% in late February, according to data from financial analytics firm S3 Partners.
The number of shares sold short has dropped by about 25% since February 26 to 13.3 million shares, data from S3 Partners showed.
In Washington, the U.S. Senate Banking, Housing and Urban Affairs Committee planned a remote hearing titled 'Who Wins on Wall Street? GameStop, Robinhood, and the State of Retail Investing.'
Shares in the company are still below January peaks of more than $480 a share but the recovery may reduce losses for more of the investors who lost money on the stock's subsequent collapse.
The Nasdaq jumped more than 3% Tuesday to recoup its losses in the previous session.
Among the biggest boosts to the S&P 500 and the Nasdaq were Tesla Inc, Apple Inc, Amazon.com Inc, Facebook Inc and Microsoft Corp.
U.S. 10-year Treasury bond yields eased to 1.54% after hovering near 13-month highs of 1.613% in the prior session. Longer-dated yields have jumped over the last month as investors price in a faster-than-expected economic rebound and higher inflation.
Higher yields can weigh even more on tech and growth stocks with lofty valuations, as they threaten to erode the value of their longer-term cash flows.
It follows wild gyrations in the share price since January, when it was at the heart of a social media-driven surge in a number of stocks that squeezed some hedge fund investors
At 9:59 a.m. ET, the Dow Jones Industrial Average rose 168.01 points, or 0.53%, to 31,970.45, the S&P 500 gained 57.06 points, or 1.49%, to 3,878.41 and the Nasdaq Composite gained 399.55 points, or 3.17%, to 13,008.71.
The global economic outlook has brightened as vaccine rollouts gain speed and the United States launches a massive new stimulus package, the Organisation for Economic Cooperation and Development said, hiking its 2021 growth forecasts.
The U.S. House of Representatives could approve the relief bill as early as Tuesday, with a vote allowing the Democratic president to sign the legislation into law later this week.
The bank index dropped 2% after vaulting to a new 14-year peak. Financials and energy sectors were in the red.
Market watchers have cited the U.S. Senate´s passage of a $1.9 trillion stimulus bill including $1,400 direct payments to Americans as one catalyst
Since January, GameStop shares have had several wild swings, one of the hottest meme stocks followed on social media
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