GameStop Stock Is Rising Again: What's Going On?

Shares of GameStop Corp. GME are trading higher Tuesday, continuing a recent uptrend that appears to be fueled by renewed interest from retail investors as well as upward momentum in Bitcoin BTC/USD.

What To Know: GameStop shares have gained attention following the company’s decision earlier this year to adopt Bitcoin as a treasury reserve asset, a move that appears to have helped shares in recent weeks. As Bitcoin surged to new all-time highs last week, retail traders appeared to revisit the name, long considered a meme stock with speculative ties.

GameStop's pivot toward Bitcoin came after months of speculation, beginning with a photo of CEO Ryan Cohen alongside Strategy chairman Michael Saylor, the most prominent corporate Bitcoin advocate.

GameStop previously made a push into the crypto space with the launch of wallets that let users manage crypto and non-fungible tokens (NFTs) and also provided access to GameStop’s NFT marketplace. However, the company closed down the offering in 2023 due to "regulatory uncertainty."

The company confirmed the rumors during its fourth-quarter earnings release in March by updating its investment policy to include Bitcoin holdings. While revenue fell short at $1.28 billion, earnings per share beat expectations and net income more than doubled. The company also ended the quarter with $4.78 billion in cash and equivalents, putting it in a strong position to execute on its new digital asset strategy. GameStop shares are now up about 38% over the past three months.

Meanwhile, AMC Entertainment Holdings Inc. AMC shares jumped more than 23% on Tuesday after the company reported strong attendance and revenue over the holiday weekend. AMC said it welcomed over seven million guests globally and recorded its highest food and beverage sales for any five-day period this decade. The surge was driven by strong openings for films like Lilo & Stitch and Mission: Impossible — The Final Reckoning, marking what CEO Adam Aron called a turning point for the theater industry.

The coordinated rise in GameStop and AMC shares on Tuesday comes as no surprise to traders familiar with their trading history. Both have been central to meme-stock rallies in recent years and often move in tandem, driven by retail investor momentum and speculative sentiment. With Bitcoin breaking all-time highs and moviegoers returning in record numbers, GameStop and AMC are once again catching the attention of traders looking for outsized moves.

GameStop is trending on various social platforms as traders highlight technical momentum paired with continued short selling in the name. Gamestop has short interest of 11.93%, according to Benzinga Pro.

GME Price Action: GameStop shares were up 4.91% at $34.58 at the time of publication Tuesday, according to Benzinga Pro.

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