Stock Price Today (February 26): Forecast for GameStop Price following the 104% Surge
GameStop shares soar more than 100% amid executive shuffle
Shares of GameStop surged more than 100% on Wednesday as investors poured into the brick-and-mortar retailer amid a C-suite shake-up, said CNBC.
Shares were halted with less than 30 minutes left in the trading day and the stock ended the day up 103.9%. Shares of GameStop rose another 83% in after hours trading on Wednesday.
GameStop announced Tuesday that its chief financial officer Jim Bell will resign on March 26.
“Mr. Bell’s resignation was not because of any disagreement with the Company on any matter relating to the Company’s operations, policies or practices, including accounting principles and practices,” the company said in a filing with the Securities and Exchange Commission.
Sources familiar with the matter told Business Insider that Bell did not leave willingly, but was pushed out by Ryan Cohen, co-founder of Chewy who made an investment in GameStop last year in an effort to help the company accelerate its push online.
Bloomberg News reported on Tuesday evening that GameStop’s board pushed Bell out in order to execute its turnaround more quickly, according to sources familiar with the matter.
Cohen’s appointment to the GameStop board helped drive the heavily shorted stock upward in January, which resulted in the epic short squeeze in GameStop that provoked retail trading mania and eventually attention from Congress.
“We acknowledge that leadership changes often follow activist settlements and Mr. Bell’s exit was mutual, non-immediate, and suggests no disagreements with company/board,” Jefferies equity analyst Stephanie Wissink told clients. “We believe Mr. Bell deserves recognition for a series of actions that protected GME equity during the late stages of the last hardware cycle, when sales were down sharply.”
Jefferies added that GameStop will likely look for a CFO replacement with a tech, compared to retail, background, as GameStop focuses on e-commerce growth.
A handful of other Reddit trades rose in after hours trading on Wednesday. Shares of AMC popped 22% and Koss gained 57%.
|Earlier this year, GameStop stock had an epic short squeeze, orchestrated by a group on Reddit called Wallstreetbets. This group noticed that short interest for GameStop stock was over 100%. With a clever combination of buying common shares and call options (called a gamma squeeze), the group was able to cause the price per share to go up, forcing many short-sellers to close their positions for massive losses.|
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Reddit recovers from hour-long outage amid heavy trading in GameStop
Reddit recovered from an hour-long outage that affected thousands of users on Wednesday afternoon as volatility returned to stocks including GameStop GME.N> and AMC that were at the center of a slugfest between retail traders and Wall Street, according to Reuters.
Videogame retailer GameStop, which had closed up about 104per cent on Wednesday and was once again a favorite pick on the WallStreetBets page, doubled in extended trading, even as the social media platform was not fully functional.
Analysts that follow the stock offered several reasons for the surge, including a corporate reshuffle. The firm had on Tuesday said its finance head Jim Bell will step down next month.
Reddit, now more famous for its day-trading forum where individual traders recently triggered a rally in many shorted stocks, has faced several outages in recent months.
At the peak of the latest outage, there were more than 52,000 reports of people facing issues with the platform, according to outage tracking website Downdetector.
|Reddit logos are seen displayed in this illustration taken February 2, 2021. REUTERS/Dado Ruvic/Illustration|
To be sure, Downdetector only tracks outages by collating status reports from a series of sources, including user-submitted errors on its platform. The outage might have affected a larger number of users.
SwaggyStocks, which aggregates sentiment on shares discussed on WallStreetBets which has about 9 million participants, showed GameStop and AMC were the most discussed stocks on the page.
Shares of the cinema theater operator AMC, which closed up 18per cent, were up another 15per cent after the bell.
|Photo: Business Insider|
Fisker soars 45% after it partners with Foxconn to develop and manufacture a new electric vehicle
Fisker Inc. soared as much as 45% on Wednesday after it said it entered a memorandum of understanding with Foxconn to jointly develop and manufacture an electric vehicle, Markets.businessinsider reported.
The vehicle will be Fisker's second EV model, after its Ocean electric SUV, which is expected to be launched next year and is being manufactured in partnership with Magna.
Foxconn is best known as the Chinese manufacturer of Apple's iPhone, and is the world's largest electronics manufacturer.
The proposed collaboration is targeting an annual production rate of 250,000 electric vehicles, with the start of production expected in the fourth quarter of 2023. The vehicles being built by Foxconn will be sold in North America, Europe, China and India, according to Fisker.
Fisker is staying true to its go-to-market strategy, which is comprised of designing electric vehicles, but outsourcing all of the production to contract manufacturers rather than build the vehicle itself.
"The collaboration between our firms means that it will only take 24 months to produce the next Fisker vehicle - from research and development to production, reducing half of the traditional time required to bring a new vehicle to market," said Foxconn chairman Young-way Liu.
Both Fisker and Foxconn expect to sign a formal partnership in the second quarter.
Tesla's Stock Drop Is All Thanks To Musk's Big Bitcoin Bet
After a meteoric rise of more than 700% in 2020, Tesla’s stock value has taken a dive and the company has suddenly entered a bear market. Indeed, just two months after speculation over the electric car company’s addition to the S&P 500 made Elon Musk the richest man on Earth, briefly overtaking fellow centibillionaire Jeff Bezos of Amazon, Tesla’s shares have dropped a whopping 22% since their record close, turning the company negative for the year. Most recently, Tesla’s stock prices dropped 6% in a single day, the company’s largest single-day loss in half a year.
At a time when the EV revolution is just starting to explode, electric car company stocks are hotter than hot, and investors are making big bets on clean energy tech in general, what caused this huge drop in Tesla’s share values? According to some analysts, the answer involves another buzzworthy boom-and-bust commercial entity: the cryptocurrency giant Bitcoin.
“This pullback really started after Tesla made the decision to buy $1.5 billion of bitcoin,” New York-based investment research firm CFRA’s Garrett Nelson was quoted by MarketWatch. “Although Tesla used a relatively small percentage of their overall cash to make the purchase, it has investors questioning its future growth strategy.”
Earlier this month, in an official filing with the Securities and Exchange Commission, Tesla stated that the company made its massive bitcoin purchase for “more flexibility to further diversify and maximize returns on our cash.” Musk’s company has also said that they plan to accept bitcoin as payment in the very near future, in a move that would make them the very first major automaker to accept the divisive cryptocurrency. “The moves raise questions around CEO Elon Musk’s recent behavior on Twitter, where he has been credited for increasing the prices of cryptocurrencies like bitcoin and dogecoin by posting positive messages that have encouraged more people to buy the digital currencies,” CNBC reported in February.
Initially, the move paid off--to the tune of about $1 billion in paper profits according to Wedbush Securities analyst Daniel Ives. Now, however, Tesla’s involvement with bitcoin has taken a turn for the worse. According to analysts, the EV company’s shares are now married to the value of bitcoin, and both have taken quite a dive in recent days. “Musk is now tied to the bitcoin story in the eyes of the Street and although Tesla made a billion paper profit in its first month owning the digital gold, it comes with added risk, as seen this week,” Ives was quoted by CNBC on Tuesday.
Indeed, Elon Musk’s net worth plummeted by a whopping $30 billion overnight, making the company’s initial $1 billion in paper profits from the bitcoin purchase look like a paltry sum. The second-richest man on earth’s net worth now stands at $169 billion, while Tesla stocks are trading at $697. Adding insult to crypto-injury, the company’s falling out of favor with traders was catalyzed by the disappointing $24 billion valuation of market newcomer Lucid Motors, which cast a pall over the entire EV sector, according to reporting by MarketWatch.
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