GameStop Shares Swing Sharply in Volatile Session

GameStop shares jumped at the opening bell and climbed as much as 41% to $348.50 midday—a move that briefly put them on pace to close at a new all-time-high.

The stock then tumbled to $172, erasing roughly half its value in less than 30 minutes. Trading in the stock was briefly halted seven times during the session for volatility. There were no obvious catalysts for the moves.

The big swings in GameStop’s share price are reminiscent of late January, when individual traders banded together to drive the stock to record highs, inflicting punishing losses on top-performing hedge funds. GameStop soared as high as $483 in intraday trading that month before falling below $40 intraday only a few weeks later.

Many market observers viewed the stock’s swift rise and fall as an extraordinary event, with some expecting the stock to return to earth. Individual investors, however, held on, and enthusiasm remained high on Reddit’s popular WallStreetBets internet forum, where interest in GameStop first gained steam.

GameStop’s shares received a jolt in late February and then took off again after the company announced Monday that its board had formed a committee dedicated to accelerating its transformation into a technology business. Board member Ryan Cohen, the Chewy Inc. co-founder known for his e-commerce savvy, was tapped to lead the committee.

The news of the committee sent GameStop’s shares flying, with the stock now trading up 92% for the week. Year to date, the stock is up more than 1,300% after starting the year trading around $18.

GameStop’s jump Wednesday marked the sixth consecutive day of gains for the stock, the longest winning streak for the company since September.

Write to Caitlin McCabe at [email protected]