GameStop has surged as much as 35% over the past two days amid a renewed resurgence of chatter about the video game retailer on Reddit’s Wall Street Bets forum.
The stock has consolidated sideways over the past two-months, but shares have moved to the upside in recent days alongside its “meme stock” sidekick AMC Entertainment, which is up 49% since the start of the week.
The move higher in GameStop is causing short-sellers more pain, as short interest in the company has remained elevated even after hedge fund Melvin Capital capitulated out of its bet against the company. According to data from MarketBeat, 21% of GameStop’s share float is sold short, and month-to-date, GameStop short-sellers have lost $442 million, according to data from ORTEX.
GameStop has capitalized on its epic year-to-date share-price rally of more than 1,100%. The company raised more than $550 million via an at-the-market share offering, retired debt, and has implemented a turnaround strategy led by Chewy.com co-founder Ryan Cohen.
That turnaroun plan was on full display on Tuesday after the company revealed that it is building an NFT platform on the Ethereum blockchain.
“gamestop? GAME ON!!!!” said a Wall Street Bets post in reaction to the recent rise in shares of GameStop. The post had about 18,000 upvotes as of Wednesday morning.
Shares of GameStop are still about 50% below its record intra-day high of $483 reached during the wild January short-squeeze.