GameStop : New ‘meme stock’ Clover Health rises, while Gamestop tumbles
June 10, 2021 at 07:11 am EDT
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GameStop shares fell 7.6 per cent this morning while Clover Health Investments (CLOV.O) jumped 5.9 per cent earlier today after soaring about 86 per cent earlier this week as retail traders on reddit turn their attention to new stocks to push up.
GameStop announced the head of Amazon’s Australian business, Matt Furlong, as its new CEO yesterday and said it may sell new shares after it reported quarterly results that were stronger than expectations.
Shares of the videogame retailer closed on Wednesday at around $302 (£214), near levels hit in January when a Reddit-driven frenzy pushed its stock up 1,600 per cent.
Clover Health, which had a short interest of 43.5 per cent of free float as of Tuesday, was up 5.9 per cent and hitting a record high of $28.85 (£20.46) during the session.
Over the last two weeks so-called “meme stocks” have received $1.27bn (£900m) of retail inflows, Vanda Research said on Wednesday. The figure matched their peak in January when the surge in Gamestop shares squeezed short sellers, raising the stock price further.
Shares of AMC Entertainment were down 6 per cent, while prison operator Geo Group (GEO.N) – considered the latest “meme stock” – fell 8.5 per cent after surging almost 40 per cent on Wednesday.
The rally in heavily shorted U.S. stocks has drawn the attention of the U.S. Securities and Exchange Commission and Gamestop admitted on Wednesday that the SEC had requested documents and information related to an investigation into that trading.
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GameStop Corp. offers games and entertainment products through its stores and e-commerce platforms. The Company operates in four geographic segments: United States, Canada, Australia and Europe. Each segment consists primarily of retail operations, with the significant majority focused on games, entertainment products and technology. The Company has a total of approximately 4,169 stores across all of its segments: 2,915 in the United States, 203 in Canada, 404 in Australia, and 647 in Europe. Its stores and e-commerce sites operate primarily under the names GameStop, EB Games and Micromania. Its Australia and Europe segments also include approximately 49 pop culture themed stores selling collectibles, apparel, gadgets, electronics, toys and other retail products for technology enthusiasts and general consumers in international markets operating under the Zing Pop Culture brand. The Company's brands also include its print and digital gaming publication, Game Informer magazine.
GAMESTOP CORP. 
