For those thinking the GameStop (GME) stock surge was over, think again. GameStop shares have had an incredible 24 hours. Yesterday the stock surged over 103% to $91.71 per share. Will that doubling happen again today? You never know, but things are moving in that direction. As of the time of this writing GameStop shares are up 83% in pre-market trading.
The big question is, “why?” In January the stock was heavily traded by Redditors on the Reddit board WallStreetBets, sending the previously beleaguered stock into the stratosphere, making retail investors (aka “the little guy”) millions while major hedge funds lost a fortune. That Reddit-powered surge even led to a Congressional hearing on the matter.
But while GameStop’s surge over the last 24 hours no doubt has some Redditors buying in, the main reason for GME’s movement appears to be the fact that the company ousted its Chief Financial Officer Jim Bell, reports CNBC. Bell will resign from GameStop on March 26, and while it has not been confirmed who will take his place, some reports say it will be Ryan Cohen, a GameStop investor and the cofounder of Chewy, a pet e-commerce site.
So is it time to get into GME again? That’s a personal decision. But just remember, if you do decide to jump on the GME bandwagon while the stock is soaring, don’t invest any more than you can afford to lose, because as we’ve seen in the last month, GameStop’s share price can fall as rapidly as it rose.