GameStop Rally Thursday Likely Fueled By Ryan Cohen's Cryptic Tweet: Analyst

Shares of videogame retailer GameStop Corp. GME rose sharply on Thursday, with an analyst saying that a cryptic tweet by major shareholder Ryan Cohen could be the reason for the stock’s late-afternoon rally.

What Happened: GameStop stock closed almost 6.6% higher on Thursday at $132.35, after rising to as-high-as $147.87 in intra-day trading. The stock surge came even as Wall Street ended lower on Thursday.

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Ryan Cohen, a major shareholder of GameStop and founder of online pet food retailer Chewy Inc. CHWY, tweeted a screenshot of what appeared to be the popular sock puppet advertising mascot of Pets.com.

pic.twitter.com/4aNscJZMW8

— Ryan Cohen (@ryancohen) March 4, 2021

Pets.com was a company that became a high-profile victim of the dotcom bubble two decades ago. The dot-com enterprise liquidated in November 2000.

A Reuters report quoted Wedbush Securities analyst Michael Pachter as saying that Cohen’s tweet was “as good an explanation as any” for the surge in GameStop shares.

“The core ‘story’ is that he will change the company and reverse its fortunes, so anything he does to reinforce that change... is going to move the stock higher,” the report quoted the analyst as saying.

Why It Matters: GameStop has been among the most heavily shorted stocks in recent months. The stock was a darling of the Reddit investor forum r/WallStreetBets and spiked in January as a wave of buying by bullish retail traders forced short sellers to unwind their positions.

Also Read: Here Are The Stocks With the Highest Short Interest Rate This Week: GameStop, Academy Sports

A rally in GameStop shares last month following the resignation of Chief Financial Officer Jim Bell was also linked to a cryptic tweet by Cohen of a McDonald’s Corp. MCD ice cream cone with a frog emoji.

Price Movement: GameStop shares closed almost 6.6% higher on Thursday at $132.35, but fell 2.9% in the after-hours session.

Read Next: GameStop Short-Selling Fame’s Melvin Posts 20% Returns for February: Report

Photo courtesy: EPIC via Wikimedia