GameStop
No news about the video game retailer has contributed to Thursday’s 5.6% drop in GameStop (NYSE:GME) shares at 11:40 a.m. ET. However, the filing by GameStop Chairman Ryan Cohen to sell his entire interest in Bed Bath & Beyond (NASDAQ:BBBY) has sent that stock down by over 30%.
Reason for the Stock Gain
Although Cohen’s initial investment caused a surge in Bed Bath & Beyond’s stock, which earned him three seats on the company’s board of directors, Bed Bath & Beyond’s stock had been falling throughout the summer as the market’s more risky ventures were sold off. Cohen’s investment caused the stock to surge.
The value of Bed Bath & Beyond shares has increased by a factor of four in the past month, while shares of AMC Entertainment have increased by a factor of two, and GameStop (NYSE:GME) has increased by about 40%.
Following the disclosure of Cohen’s option position in the home goods company, shares continued their meteoric ascent, with the strike prices portending the likelihood that the shares would continue their ascent much further. However, the filing that he made yesterday announcing his desire to liquidate his position has caused the price to plunge. Today, not only does GameStop’s (NYSE:GME) stock price go down, but AMC’s also does by 5%.
What’s Next?
Such actions do not appear to have had much of an effect on the retail stock traders who have been primarily responsible for maintaining the value of GameStop (NYSE:GME) shares ever since the initial meme stock trading frenzy that took hold of the market the previous year.
The value of a share of stock selling for less than $5 a share in January 2021 has increased by a factor of seven to more than $38 per stub today. Investors who purchased GameStop (NYSE:GME) stock at its all-time high of over $80 per share are still nursing a significant loss, but many other investors are still making a profit on their investments in the video game retailer and continue to believe there is a great deal more upside in the stock of the video game retailer.
Featured Image: Megapixl © Bennymarty
Author Shariq Khan 