Shares of videogame retailer GameStop Corp. (GME) surged 15% in premarket trade Tuesday, extending Monday's 41% gain, after the company said it has created a new strategy committee ( identify ways to accelerate its transformation. The committee will be chaired by activist investor Ryan Cohen, manager of RC Ventures LLC and co-founder of Chewy Inc. (CHWY), and will also include Alan Attal and Kurt Wolf. It was the first communication from the company since it announced the departure of its CFO in late February. It comes after the stock followed a historic surge to a record close of $347.51 on Jan. 27, as the poster child of trading frenzy engineered by Reddit's WallStreetBets forum that targeted heavily shorted stocks. AMC Entertainment Holdings Inc. (AMC), the world's biggest cinema chain, which was caught up in that January move, was up 2.5% premarket. The other handful of stocks that were promoted heavily by WallStreetBets were also higher Tuesday. BlackBerry Ltd. (BB.T) added 5%, Naked Brand Group Ltd (NAKD) was up 7% and headphone maker Koss Corp. (KOSS) was up 9%. Washington will keep the spotlight on Robinhood and other zero-commission brokers when the Senate Banking Committee holds a hearing on the GameStop saga Tuesday at 10 a.m. Eastern, ( ) with expert witnesses set to warn of the dangers of financial speculation
-Ciara Linnane; 415-439-6400; AskNewswires@dowjones.com
(END) Dow Jones Newswires
March 09, 2021 06:52 ET (11:52 GMT)
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