Show an ad over header. AMP

Behind GameStop's latest stock surge

Back in focus: The meme stock trade.

By the numbers: GameStop finished up 19%, after a wild day that saw shares spike as much as 80%.

Why it matters: The moves are muted compared to the eye-popping gains that shocked the world last month.

  • But the surge means online traders banding together on social media boards could be a lasting feature of the U.S. stock market.

What's going on, technical answer: The steep gains that started Wednesday night were "mostly long buying with short covering sprinkled in to help grease the skids up," says short-selling expert Ihor Dusaniwsky.

What's going on, more fun theory: A CFO resignation and a tweet featuring an ice cream cone are riling people up.

  • GameStop says its chief financial officer is resigning — an executive who was once respected (at least by traditional investors) for helping shape up the company's finances.
  • The C-Suite swap is now seen as an opportunity for change, a theory fueled by a picture of a McDonald's ice cream cone tweeted out by board member Ryan Cohen — a major shareholder who gained a board seat (and thus more influence) earlier this year.
  • Much like McDonald's is known for fixing its broken ice cream machines, the thinking is Cohen was signaling that he would "fix" GameStop.

What they're saying: "This doesn't make any sense," Anthony Chukumba, a longtime Wall Street analyst, told CNBC Thursday of GameStop's wild rally.

  • "And you know what, call me a boomer. I'm totally fine with that."
  • He said the stock is worth $10, at the most.

What to watch: All eyes will be on GameStop if and when the company takes advantage of the hype to grow its struggling business.

  • It wouldn't be the only Reddit stock to do so: AMC took advantage of its stock surge by swapping roughly $700 million worth of debt into equity.
  • It's "curious" that GameStop hasn't issued shares at this soaring price — a move companies do to raise money, Telsey Advisory Group's Joe Feldman tells Axios.

Biden's blinking red lights: Taiwan, Ukraine and Iran

Russia is menacing Ukraine’s borders, China is sending increasingly ominous signals over Taiwan and Iran is accelerating its uranium enrichment to unprecedented levels.

The big picture: Ukraine, Taiwan and Iran’s nuclear program always loomed large on the menu of potential crises President Biden could face. But over the last several days, the lights have been blinking red on all three fronts all at once.

Keep reading... Show less

Czech Republic expels 18 Russian diplomats over 2014 depot explosion

Czech police on Saturday connected two Russian men suspected of carrying out a poisoning attack in Salisbury, England, with a deadly ammunition depot explosion southeast of the capital, Prague, per Reuters.

Driving the news: Czech officials announced Saturday they're expelling 18 Russian diplomats they accuse of being involved in the blast in Vrbetice, AP notes. Czech police said later they're searching for two men carrying several passports — including two named Alexander Petrov and Ruslan Boshirov.

Keep reading... Show less

Indianapolis mass shooting suspect legally bought 2 guns, police say

The suspected gunman in this week's mass shooting at a FedEx facility in Indianapolis legally purchased two assault rifles believed to have been used in the attack, police said late Saturday.

Of note: The Indianapolis Metropolitan Police Department's statement that Brandon Scott Hole, 19, bought the rifles last July and September comes a day after the FBI said in a statement to news outlets that a "shotgun was seized" from the suspect in March 2020 after his mother raised concerns about his mental health.

Keep reading... Show less

U.S. and China agree to cooperate on climate action, but details remain to be negotiated

Despite an increasingly tense relationship, the U.S. and China agreed Saturday to work together to tackle global climate change, including by "raising ambition" for emissions cuts during the 2020s — a key goal of the Biden administration.

Why it matters: The joint communique released Saturday evening commits the world's two largest emitters of greenhouse gases to work together to keep the most ambitious temperature target contained in the Paris Climate Agreement viable by potentially taking additional emissions cuts prior to 2030.

Keep reading... Show less

"We couldn't do two things at once": Biden defends not immediately raising refugee cap

President Biden on Saturday sought to explain why he didn't immediately lift the Trump administration's historically low refugee cap.

Driving the news: Several Democrats accused Biden Friday of not fulfilling his pledge to raise the limit after it was announced he'd keep the cap. The White House said later it would be raised by May 15. Biden told reporters Saturday, "We're going to increase the number."

Keep reading... Show less

Children of color in rural areas battle deep health care disparities

Living in the nation's poorest, most rural communities can be a death sentence for African American and Native American children.

Why it matters: Lack of health care and healthy food make Black and indigenous childrenin the nation’s most disadvantaged counties five times as likely to die as children in other areas of the country,the advocacy group Save the Children found after analyzing federal data.

Keep reading... Show less

How telehealth can narrow racial disparities

Data: CDC; Chart: Danielle Alberti/Axios

Racial disparities have been a constant problem in maternal health care, from rising death rates to the threat of severe COVID-19 among pregnant women. But now experts are hopeful that telehealth can help narrow those disparities.

Why it matters: It's not a complete solution to the racial barriers women of color face. But some experts are optimistic that telehealth — long-distance health care through videoconferences and other technology — can help reduce those barriers by offering flexibility in appointments and better access to diverse providers.

Keep reading... Show less

Capitol Hill's far right pushes Anglo-Saxon values, European architecture

Multiple far-right House Republicans have begun planning and promoting an America First Caucus aimed at pushing "uniquely Anglo-Saxon political traditions," Punchbowl News first reported.

The big picture: "The document was being circulated as the GOP is struggling to determine a clear direction as it prepares to try winning back control of the House and Senate in the 2022 elections," AP writes.

Keep reading... Show less



Get Goodhumans in your inbox

Most Read

More Stories