Despite its trajectory over the past few years, GameStop seems to be doing well for itself in 2021. So well, in fact, that this week has seen the company’s stock doubled compared to where it was at only a couple of days prior. While it doesn’t mean that the future of GameStop is now going to necessarily be bright, it's a step that those in charge of the business are surely pleased to see.
Early yesterday morning on January 13th, GameStop’s stock price immediately jumped by roughly $10 per share as it went to around $20 to $30 when the market opened. This trend continued over the course of today where stock prices surged by roughly another $10, seeing its stock price peak at a little over $41 around midday. As of the market’s closing today, GameStop’s stock price is sitting at $39.91, which is over double of what it was on Monday morning. Looking outside of the past week alone, this current stock price is now the highest that GameStop has boasted since 2015.
So why is the stock jumping for GameStop? Well, this is a question that many seem to be asking. GameStop has clearly had a rough go of it over the past few years as the retail chain has been forced to shut down a number of its locations. Given this elongated string of closures, many hypothesized that it was only a matter of time before GameStop as a whole would end up shutting down, but this new stock jump looks to say otherwise.
Likely the biggest reason for this surge in stock price for GameStop comes down to two factors. For one, the company just added a notable billionaire to its board of directors this week which seems to have prompted renewed interest in the company. In addition, GameStop itself also reported some positive holiday sales for this past quarter. As a whole, sales were down by 3.1% but online transactions spiked by over 300%. All in all, given the state of the ongoing pandemic and the trajectory that GameStop has seen in the past, sales absolutely could have been worse.
The only downside about GameStop’s stock spiking like this is that it could be short-lived. The stock market is a harsh mistress and GameStop’s current stock value could end up falling just as quickly as it rose. And with the COVID-19 pandemic still proving to be an issue, GameStop currently can't count on its sales at in-store locations as much as it once could. So even if 2021 has started off on the right foot for GameStop, there's a long road ahead.
We’ll keep you updated on this story moving forward if there end up being any major new developments. Until then, you can keep following all of our future GameStop coverage right here.