The Business Times

GameStop stock climbs again as US Congress watches

Published Wed, Mar 10, 2021 · 07:02 AM

[NEW YORK] Weeks after GameStop found its stock at the center of a speculative fever that rocked Wall Street, the video game retailer's share price was climbing again on Tuesday.

Less than an hour before New York trading was to conclude, GameStop stock had climbed 22.9 per cent to around US$238, which was 75 per cent higher for the week thus far.

GameStop reached massive highs around six weeks ago as retail traders organized on social networking website Reddit drove the share price up, in a campaign aimed at squeezing wealthy investors who had bet against the company and sold the stock short.

The burst was short-lived and GameStop generally fell in February, though did see its price occasionally spike.

Its surge in recent days came after the retailer announced it was setting up a committee within its board of directors to accelerate its digital transition.

The group will be led by activist shareholder Ryan Cohen, whose recent investment in GameStop was credited as propelling the late-January stock surge.

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That episode had implications beyond Wall Street, after retail trading platforms that have seen their popularity boom in the past year, like Robinhood, temporarily suspended trades of GameStop stock, drawing criticism from politicians.

On Tuesday, the Senate Banking Committee held a hearing on how Wall Street could become a more fair and transparent place for retail investors.

AFP

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