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Shares of GameStop Corp. ($GME) jumped over 5% on Monday, setting up the videogame retailer’s stock for its fifth consecutive session of gains.
If Monday’s rally holds, it would mark GameStop’s longest winning streak since a seven-day run that ended on July 16, according to MarketWatch.
GameStop has been climbing without any specific news or announcements. Retail sentiment on Stocktwits has flipped to ‘extremely bullish’ from a ‘bearish’ tone just a day ago, with message volume soaring.
Over the past year, GameStop’s following on the platform has increased by 16%, while message volume surged over 1,110%, driven largely by the return of influential trader Keith Gill, known as “Roaring Kitty.”
Gill, a key figure in the 2021 meme stock saga, recently reemerged on social media and increased his stake in GameStop. This rekindled enthusiasm among retail investors, pushing the stock higher.
In his first livestream since 2021, held on June 7, Gill also voiced his support for GameStop’s Executive Chairman Ryan Cohen.
Cohen, who has a strong following among retail investors, further stoked the enthusiasm by expressing his support for former President Donald Trump after his recent electoral victory.
Cohen posted “God Bless America!” on social media platform X, following which GameStop notched its biggest daily percentage gain since Oct. on Friday.
MarketWatch reports that short interest in GameStop as a percentage of public float stands at 9.25%.
This relatively modest short interest suggests that while the stock has faced pressure from shorts, it hasn’t reached extreme levels seen during previous meme stock surges.
GameStop’s surprise profit in its second-quarter earnings report in September provided a boost to the stock, although it noted a sales drop of over 30% year-over-year.
The company also announced an at-the-market stock offering of up to 20 million shares, which has not dampened investor sentiment significantly.
Year to date, GameStop shares have climbed 41.9%, outpacing the S&P 500’s ($SPX) gain of 25.7%.
The company will report fiscal third-quarter earnings next month.
A Stocktwits poll reveals that 39% of retail investors believe that GME is rallying because “meme season is back” while 20% attribute it to the “crypto momentum crossover.”
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