What Happened?
Shares of video game retailer GameStop (NYSE: GME) jumped 6.2% in the afternoon session after the stock's positive momentum continued as CEO Ryan Cohen said that he aimed to transform the company into a $100 billion powerhouse by pursuing a major acquisition within the consumer or retail sectors.
This goal would require deploying the company's large cash reserves to acquire a business that could deliver a significant boost to GameStop's market value. The announcement was met with investor optimism, reflecting confidence in Cohen's leadership.
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What Is The Market Telling Us
GameStop’s shares are very volatile and have had 22 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 7 days ago when the stock gained 5.2% on the news that famed investor Michael Burry disclosed he had been buying its shares. Burry, known for his depiction in 'The Big Short,' revealed in a Substack post that he had been purchasing GameStop stock as a long-term value investment. This announcement fueled a rally that was already supported by strong insider confidence.
GameStop is up 23.2% since the beginning of the year, but at $25.40 per share, it is still trading 27.5% below its 52-week high of $35.01 from May 2025. Investors who bought $1,000 worth of GameStop’s shares 5 years ago would now be looking at an investment worth $1,129.
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