The GameStop stock returned to surge yesterday.
The chart shows vertical growth with the stock back up to $108 after it had fallen back down to around $40.
Among other things, GameStop went against the trend compared to the rest of the sector, which experienced a negative day yesterday with numerous sales.
GameStop, in fact, started the day at $45 and then climbed above $100 before the markets closed. However, there is no reason for this sudden price increase this time. While GameStop remains a topic of discussion on the Reddit group WallStreetBets, there is no confirmation that an artificial pump caused the price hike this time.
The only news that may have moved GameStop’s stock market is the change in management. The company has announced that CFO Jim Bell will step down on March 26th.
According to Forbes, GameStop has not specified the reasons for Jim Bell’s departure, but there are indications that there were disagreements about his management. The Chief Financial Officer was accused of failing to lead the transition to digital with the necessary urgency. However, there was no official comment from the company.
GameStop’s volatile stock
From being a company in crisis, GameStop took the stage thanks to the short squeeze organized by the Reddit group WallStreetBets. This allowed it to see its shares soar to over $400. However, according to Reuters, the company was unable to take advantage of the increase in the value of its shares due to a series of restrictions and regulations that would have brought it into conflict with the SEC.
Moreover, the pump organized on Reddit has already put too much attention on GameStop, so much so that the case will be the subject of hearings in the US Congress.
In short, GameStop could have recapitalized but did not. So it has no choice but to keep trying to innovate by listening to the demands of users, who are less and less inclined to go to shops to buy games, and more and more inclined to buy online.
But this transition will have to be accelerated. That will be the task of the next CFO.