By Dhirendra Tripathi
Investing.com - GameStop (NYSE:GME) shares were up 11% at $275 in premarket trade Wednesday, on course for its sixth straight session of gains.
If sustained, the rise will also make it GameStop stock's longest streak of daily gains in six months.
The share had closed at $246.90 Tuesday, gaining nearly 27% from the previous close. According to Reuters, data from brokerage Lang & Schwarz showed the scrip to be among the top three traded shares on its platform.
The stock’s recent surge comes in the backdrop of the company appointing a three-member panel, headed by its board member and co-founder of online pet food retailer Chewy (NYSE:CHWY), Ryan Cohen, to spearhead transition to a digital life and reverse a long-term decline in sales.
The committee will “identify initiatives that can further accelerate the company’s transformation”, a March 8 filing by the company said.
Scrips like GameStop, Koss (NASDAQ:KOSS) -- a maker of headphones -- and AMC Entertainment (NYSE:AMC) are known as meme stocks as they tend to attract a lot of millennial retail traders concentrated on forums such as Reddit chatboards.
GameStop attracted worldwide attention in January when a group of Reddit followers, ‘WallStreetBets’ plotted against hedge funds who were heavily short on the stock.
The Reddit-driven short-squeeze sent the stock to a high of $482 last month, far above most analysts' price targets. The stock has since been buzzing on the charts with strong volumes amid intense price volatility.