In a surprising twist of fate, GameStop shares experienced a huge increase in value after their depreciation last month. Their trading was stopped twice on the stock market floor due to their volatility.
The company's shares experienced a 104% growth and were priced at approximately $91.71 per share. During its growth, Reddit experienced a one-hour downtime.
Gamestop's demand is approximately three times higher
According to data from Refinitiv, the game retailer's stock demand is approximately three times higher than its weekly average. The stock experienced a 90% gain in value before the stock market closed for the day. It's not known if the stock will lose its steam in the coming days.
Its volatility is reminiscent of the stock trading frenzy last month that saw multiple hedge funds lose millions of dollars. During the stock market frenzy, the Game stock experienced a 1600% jump in value, and it was valued at around $350 per stock.
GameStop rise was powered by a group of Reddit investors on a Reddit page called WallStreetBets. The investors urged other Redditors to short-change the hedge funds that bet against the company.
Gamestop's chief financial officer resigns
According to the company, its chief financial officer is stepping down in March in a bid to move the company into the digital age.
This has led investors to speculate that the company is shifting from its traditional mortar and brick business model to an online business model that will help the company in the long term. AMC also experienced an increase in value, with its stock increasing by over 18%.
AMC's and GameStop's growth this week was cheered by members of the Reddit investment group. The stocks are commonly referred to as "Meme stocks" by members of the stock market. Some Reddit investors have stated publicly that they would continue to hold on to their GameStop and AMC stocks because of their future possible value.