GameStop shares soared over 500% in January, with the stock price rising from $6 to $120, and the company’s stocks increased by nearly 700% in three months.
Joseph Feldman, an analyst at RC Ventures, stated that the sudden rise in stocks was driven by retail investors and their expectations of increased demand in the sector in the near future. This stock surge occurred despite a double downgrade from Telsey Advisory Group, which lowered Wall Street's rating on GameStop to underperform. The company has confirmed that the stock will return to its normal valuation in the coming period, and the increases are not sustainable. On January 11, the company signed an agreement with co-founder and CEO of Chewy, investor Ryan Cohen, to appoint him and two others with significant e-commerce experience to its board of directors to change the company's business strategy.
