GameStop Stock Takes Volatile Ride After 5-Session Winning Streak

GameStop Corp. GME stock was volatile Wednesday after a strong run in recent sessions for the meme stock.  

GameStop's Wild Swing: The shares of the video game and console retailer came into Wednesday's session with positive closes in each of the five previous sessions.

The recent uptrend began in late February. The stock nearly doubled Feb. 24 as a renewed push by social media forums placed it on an upward trajectory.

A Reddit-driven rally was instrumental in the stock hitting an all-time high of $483 Jan. 28, a mammoth gain of about 2,500% for the year.

For the unitiated, the rally was fueled by stock pumping by traders belonging to the subreddit channel r/WallStreetBets.

The upward momentum was also supported by activist investor and Chewy, Inc. CHWY founder Ryan Cohen joining the board of GameStop, along with two of his former associates.

Cohen had built a stake of about 13% in the retailer.

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With interest waning in the stock, it began retracing the gains and fell to a low of around $38.50 on Feb. 19.

In a few sessions, the stock was on its way back up as speculative retail traders piled back into the equity.

The rally picked up further steam when GameStop set up a committee under Cohen's chairmanship to evaluate a business transformation into an e-commerce retailer.

Volatile Wednesday For GameStop: GameStop started Wednesday's session on a firm note. It gap-opened up at $269.43, about 9% higher from its $246.90 Tuesday closing price. 

Along with GameStop, other meme stocks such as AMC Entertainment Holdings, Inc. AMC and Koss Corporation KOSS have also ran up sharply in the session.

Hopes that at least of a portion of the Biden administration's stimulus checks will go into the purchasing of meme stocks kept the buying going in GameStop.

By mid-session, GameStop shares climbed to a high of $348.50 only to plummet to a low of $172 in a gap of about 30 minutes.

Trading in GameStop stock was briefly halted amid the volatility.

GME Price Action: After trading resumed, the stock has continued to show volatility and was up 3.68% at $255.99 at last check. 

Related Link: Which Stocks Are WallStreetBets Users Talking About Today?

Photo by Will Buckner via Wikimedia.