Shares of GameStop (GME) climbed more than 4% on Monday, marking the stock’s biggest one-day gain since October. The gain came as bullish options activity picked up and investor chatter increased across social media.
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Hedge fund manager Michael Burry drew attention to GameStop over the weekend after hinting that he was preparing a detailed post about the company. He later said the post would be delayed, but even the brief mention was enough to spark trader interest.
Options Traders Turn Bullish
The shift in sentiment was clear in the options market. By late morning on Monday, GameStop’s put-to-call ratio fell to about 0.12, roughly half of its six-month average. This shows traders were placing far more bets on upside moves than on downside protection.
In the past, similar jumps in call buying have often led to short-term rallies in GameStop shares, especially when paired with strong online interest.
Social Media Adds Fuel to the Stock’s Rally
Online activity also helped lift the stock. GameStop’s recent work with a popular TikTok creator, formerly linked to Best Buy (BBY), has drawn wide attention. Two short videos shared on X have picked up nearly 50 million views since December 10.
At the same time, discussion around Burry’s comments spread across online retail investor forums, adding to the renewed buzz.
GME’s Q3 Earnings Take a Back Seat
The rally came despite a recent earnings report that initially weighed on the stock. GameStop posted its sixth straight quarter of positive operating cash flow in Q3. However, revenues of $821 million fell about 5% from a year earlier. It also missed the $987.3 million forecast by Wall Street analysts, reflecting softer demand in core retail operations.
Monday’s rebound suggests traders are looking past near-term sales pressure and focusing more on momentum and sentiment.
Is GameStop a Buy, Sell or Hold?
Turning to Wall Street, no analysts currently hold a position on GME stock. After a 25% loss in its share price over the past year, a look at the last five days of trading in GME stock shows substantial volatility.
