GameStop Stock Surges Another 12%
GameStop Corp. made another double-digit jump for the third day in a row Thursday, trading as high as $145.19 per share.
GameStop opened at $94.05 on Tuesday and the stock closed at $115.17 on Wednesday, even seeing traction during before-trading hours Thursday morning.
GME is held by 102 ETFs. The Defiance Digital Revolution ETF (NFTZ) has the most exposure (5.21%); in second is the Roundhill Meme ETF (MEME) (3.66%); the SoFi Social 50 ETF (SFYF) sits in third (3.41%); followed by the VanEck Social Sentiment ETF (BUZZ) and the Wedbush ETFMG Video Game Tech ETF (GAMR) (2.66%) and (2.35%), respectively.
In total, 6.6 million shares of GameStop Corp are held in ETFs. The iShares Core S&P Mid-Cap ETF (IJH) tops the list by far in terms of total shares held, with 1.77 million shares, or more than a quarter of all the shares held by U.S.-listed ETFs.
That’s distantly followed by the SPDR S&P Midcap 400 ETF Trust (MDY) (530.15K), the Vanguard Total Stock Market ETF (VTI) (422.19K), the iShares S&P Mid-Cap 400 Growth ETF (IJK) (415.36K) and the Vanguard Small-Cap ETF (VB) (294.15K).
In terms of strategy, vanilla cap-weighted ETFs account for more than one-third of the funds holding GameStop shares (37). Growth ETFs (13), multifactor ETFs (11), actively managed ETFs (seven) and ESG ETFs (seven) round out the list.
GameStop has been making headlines since January 2021 when a group of Redditors short-squeezed the stock, causing it to rise to over $500 per share. In the wake of the jump, the trading platform Robinhood Markets Inc. controversially shut down buying and selling of GME shares, leading many to claim an unfair advantage for hedge funds and investment managers.
Many consider GME to be the original "meme stock," meaning a company whose share price often reflects its popularity across the internet and social media—not actual performance.
That said, 2022 has been a busy year of change for GameStop. At the end of March, its shares jumped 31% in one day on the heels of an announcement that the company wished to split its stock. The company also released its first nonfungible token and cryptocurrency Ethereum wallet earlier this week, which may have given a boost to retail sales, contributing in some ways to this week's spike in share price.
However, it appears the jump in GME stock price may come from renewed interest online to short-squeeze the stock again. Since the January 2021 incident, many followers of the stock have remained hopeful that a second, larger “mother of all short-squeezes” would be possible with GameStop shares.
Currently, around one in four GameStop shares are sold short, which, at least theoretically, could help set the stage for another massive price surge.
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