- About a month ago, the stock price of GameStop Corp. (NYSE: GME) was trading at $4.98 and it closed at $9.14 today. This is why.
About a month ago, the stock price of GameStop Corp. (NYSE: GME) was trading at $4.98 and it recently closed at $9.14. Throughout the past month, there were several announcements that led to the company’s stock price nearly doubling. Here is an overview of what happened:
August 31, 2020:
On August 31, the stock price of GameStop increased about 20%. This happened after it was revealed that RC Ventures LLC disclosed it took a 9% stake in the company.
RC Ventures is an investment firm managed by Ryan Cohen. Cohen is known as being the co-founder and former CEO of Chewy — which is an online pet supplies company that was acquired by PetSmart in 2017 for $3.35 billion and then spun off as a separate public company last year.
In an SEC filing, it was revealed that RC Ventures owned about 5.8 million shares of GameStop.
September 14, 2020
GameStop’s shares increased sharply following a pair of analyst upgrades and a bullish industry report. Specifically, Jefferies upgraded GameStop’s stock to “Buy” with a price target of $8 per share. And Telsey Advisory Group had upgraded GameStop to Outperform with a $10.00 price target.
September 16, 2020:
About a week ago, GameStop had announced it was taking pre-orders for the Sony PlayStation 5 and Sony PlayStation 5 Digital Edition consoles. And on September 22, pre-orders for the Xbox Series X and Xbox Series S started on September 22.
GameStop also announced same-day delivery services from its 3,300+ stores. And GameStop also announced new flexible payment options, including a GameStop Credit Card and rent-to-own (coming soon) along with “Buy Now, Pay Later.”
September 22, 2020:
A couple of days ago, it was revealed that Cohen has an interest in positioning GameStop in a way to become a stronger e-commerce rival against Amazon by widening its selection of items considerably.
Disclosure: I wrote this article myself and I do not have any business relationship with any company whose stock I write about. I am not a financial advisor and all articles are my opinion. You should do your own due diligence and consider talking to a financial professional before investing.