GameStop (GME) shares surged an eye-popping 28% yesterday, reaching $142.35 before settling back to $137.82 at close. And honestly, trying to explain why is like trying to nail jelly to a wall.
The latest spike appears to have been triggered by a cryptic tweet from Keith Gill (yes, the original "Roaring Kitty" is back at it again) showing nothing but a rocket emoji. That's it – that's apparently all it takes in 2025 to move billions in market cap for this perpetual meme stock.
I've watched the GameStop saga unfold since 2021, and what continues to amaze me is how it defies conventional market logic. The company's actual financial results, released last month, showed modest improvement – quarterly revenue of $1.2 billion (up 5% year-over-year) and a reduced net loss of $29 million compared to $50 million in the same quarter last year. Not terrible, but certainly nothing that justifies a $10+ billion market cap.
Ryan Cohen, who returned as CEO last year after briefly stepping away, has been implementing a digital transformation strategy that's showing some early signs of progress. Their new gaming marketplace – which includes digital game resales, a concept the industry has resisted for years – launched in beta last month.
"GameStop is at a crossroads," says Emily White from Morgan Stanley. "They've got brand recognition and a passionate customer base, but translating that into a sustainable business model remains challenging."
What's different in 2025 compared to the original 2021 meme stock frenzy is the regulatory environment. The SEC's new "circuit breaker" rules for extreme volatility – implemented last year after the Dogecoin crash – have somewhat tempered the most extreme price swings. But clearly, they haven't eliminated them entirely.
For retail investors considering jumping in now (and my inbox suggests many are), I'd offer the same advice I've been giving for years: treat GME like a trip to Vegas, not an investment. Only use money you can afford to lose completely, because fundamentals continue to take a back seat to sentiment, social media, and speculation.
The one certainty with GameStop stock? The ride isn't over yet – not by a long shot.
