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GameStop (GME) Stock Continues to Spike Days after the Appointment of Ryan Cohen

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Is the bull run going to end anytime soon, or should you invest in GME now?

Investors are having a good time if they have invested in GameStop (GME) stock earlier this month. The average trading volume is around 15.8 million—which shows that investors are betting highly on GME.

The day traders are helping the stock to keep on pumping in the recent trading sessions. As we write this, GME has soared over 51% trading at $65—in the range of a 52-week high.

But will the bullish run continue or will the stock retrieve in the coming days? The answer is that after a heavy push the day traders will take their profit and move out; GME is poised to drop in the next few days. But what does this mean for the long-term investors? Smart investing is when the price is dropping—buying the stock at a low could increase the profit margin.

What’s happening?

The reason for the recent bull is mainly powered by Citron backing away from the live stream. Earlier this week, Citron was to go live to discuss that why GameStop (GME) was heading back to $20. But later, the company pulled back due to some hacking concerns on Twitter, ending in bulls for GME.

For now, this Twitter spat may continue to fire GME stock but ultimately things will cool down in a while.

Talking about the operational depth of the company—in the Q3 report—its comparable-store sales soared by 16.5% for Nov. 2020. While the total net sales increased from $747.6 million to $791.1 million—from fiscal Nov. 2019.

Moreover, the basic push that can drive GameStop in the long-term is its business performance. That is improving which is a good sign. Another important factor is the signing of Ryan Cohen as a member of CME’s board of directors. Ryan, who is the co-founder of the famous pet food retailer, Chewy will join GameStop’s board along with two other Chewy executives.

Reportedly, Chewy’s co-founder wants things to accelerate at GameStop and he wants the company to adopt a more online strategy. With the three board seats on his side, Cohen can target this goal with more authority.

The company updated that it gained 3.1% more sales during this year’s nine-week holiday season. This was good for the company because people were more driven towards e-commerce and relied more on online sales.

In a recent SEC filing, it was unveiled that three directors sold GME’s stock with a total value of $2.7 million, while another director sold stock worth $17 million. Despite the insider selling of GME shares, the stock continued to jump, which can be a good sign.

Conclusion

Recently, GameStop (GME) has reported the growth of its sales which is good to start the new year with continuing growth. With the opening of stores and things coming to normal, we can expect the stock to perform well in this year. Most importantly, the appointment of Cohen is a very big move. If he intends to move towards the online system, things will get better for the company in the long-term.

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