Shares of video game and electronics retailer GameStop are on the rise again. The company’s stock has been surging in recent days, gaining more than 35% since the beginning of the week.
GameStop is expected to release its quarterly earnings report next week. Investors are betting on the impact of the company’s new CEO, Ryan Cohen, and hoping a surge of more than 50% with a $20 call option on December 8 being traded more than 20,000 times by Wednesday.
Meme stocks have rebounded lately amid expectations that the Federal Reserve is done with raising interest rates, which prompted traders to circle back to speculative investments.
“Speculation is back … and GameStop is ground zero for speculation,” said Steve Sosnick, chief strategist at Interactive Brokers, via Reuters.
GameStop stock has been down 38% year to date and dropped to $12.12 per share earlier in November. This has been their lowest point since February 2021 and more than 80% down from an all-time high of $81.25 in early 2021.
After a recent CEO change and a resurgence of interest in meme stock, GameStop shares experienced a steady rise. The stock started the week at $12.21 on Monday before climbing all the way to $16.25 close on Wednesday.