GameStop Rallies After Monday Announcements and Peloton Touches All Time High
On Wednesday, shares of GameStop Inc. closed up 57.64% and rallied as much as 93% in morning trading, setting a new 52-week high of $38.65.
GameStop’s rally can be attributed to their Monday announcement of massive e-commerce sales growth and three new board members’ appointments. On Monday, the company reported a whopping 309% increase in e-commerce sales skyrocketed 309% and a 4.8% YOY increase in comparable store sales for the holiday quarter period.
GameStop’s shares rose over 500% in the past 12 months.
Shares of Peloton Interactive closed up 7.29% and rose more than 8% on Wednesday, touching a new all-time high of $169.
Analysts from Bank of America have upgraded their price target for Peloton from $150 to $175 and maintain a rating of buy. Peloton has seen an increase in the demand for their luxury home exercise equipment as people avoid gyms amid the pandemic.
Peloton is currently having issues meeting the increased demand, with delivery times of more than ten weeks for some of its home exercise equipment. Bank of America analyst Justin Post, states Peloton’s “biggest near-term guidance risk remains supply.”
Peloton’s shares skyrocketed over 400% in the past 12 months.
I am not a financial advisor and my comments should never be taken as financial advice. Investments come with risk, so always do your research and analysis beforehand.