GameStop Corp GME stock surged 5.89% in Tuesday’s after-market trading session. GME stock has risen 28% since last Wednesday, and its year-to-date gains are close to 88%.
What Happened: On Tuesday, in a filing with the U.S. Securities and Exchange Commission, the company disclosed that Richard Mashaal’s hedge fund firm, Senvest Management LLC, purchased over 3.6 million common stock representing a 5.54% stake in GameStop last week.
This followed the consumer electronics and gaming retailer entering into a multi-year partnership with tech giant Microsoft Corporation MSFT last Thursday.
Through the deal with Microsoft, GameStop hopes to improve customer experience by leveraging Microsoft's expertise in cloud computing. Additionally, the esports merchandise retailer has also announced payment plans for the upcoming models of Xbox consoles, including an Xbox All Access program.
Why Does It Matter: In September, there were reports that Entrepreneur and GameStop investor Ryan Cohen held strategic discussions with the company’s management. Cohen was keen to expand the e-commerce segments beyond consumer electronics and video games, and position the company to take on e-commerce giant Amazon Inc AMZN.
Cohen is GameStop's largest individual investor with 10% holdings and BlackRock Institutional Trust Company BLK is the biggest institutional investor with a 15.31% stake.
Price Action: At the end of Tuesday’s after-hours, GME stock was quoting at $12.58 per share.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Comments
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
