GameStop staged a stunning intraday comeback from its post-earnings sell-off on Thursday as retail investors looked past the lack of clarity on turnaround plans and piled into the meme star.
Shares of the video game retailer last traded 1% higher at around $200 in heavy trading after losing as much as 10.5% at its session low of $178 apiece.
The initial drop came as GameStop failed to provide outlook for the upcoming quarters and details on its e-commerce transformation, which disappointed Wall Street analysts. But signs emerged that small investors on Reddit’s chatroom decided to buy the dip in the name, pushing the stock higher.
GME was the single most popular ticker mention on Reddit’s WallStreetBets forum, overtaking previous stars of the show Clover Health and SPY (the exchange-traded fund that tracks the S&P 500), according to alternative research provider Quiver Quantitative.
GameStop was also the most active trade on Fidelity as of 2 p.m. ET with nearly three times as many buy orders as sell orders, according to broker’s website. Other meme stocks were also among the top buys on the platform, including AMC Entertainment, Vinco Ventures and Support.com.
As of afternoon trading, more than 6 million shares of GameStop have changed hands, nearly doubling its 30-day average trading volume, according to FactSet.
While GameStop fell short in terms of forward guidance, the retailer did post a narrower loss in the second quarter and rising sales.
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