A couple of meme stocks are trading mixed as investors juggle internet sentiment and good news. Both GameStop and ContextLogic are giving investors something to potentially look forward to. GameStop shares are trading in the red while ContextLogic, a mobile e-commerce company, has most recently flipped green.
For GameStop’s part, it experienced a near doubling of its U.S. seaborne imports of gaming peripherals between March and April of this year compared to the same period in 2020. Imports were reportedly up almost 40% compared to the prior three-month period, all according to data by S&P Global Market Intelligence arm Panjiva cited by Barron’s.
GameStop’s suppliers look mostly to Asia to build the products that the gaming retailer, in turn, buys from them, according to the company’s latest annual report. Rising imports could suggest higher demand now that GameStop is making efforts to make the company relevant again. GameStop shares are down nearly 3% as short-selling ratios and options data continue to drive the price.
Short-Term Trade or Long-Term Play
As an early meme stock, GameStop’s stock has been acting more like a short-term trade than a long-term investment based on any fundamentals. But The company is using the spotlight as a springboard to keep the momentum going even after the meme movement fades.
In recent days, GameStop issued 5 million shares at about USD 225 per share. It was only two years ago that the gaming retailer was buying back its own shares at around USD 5 per share, which is a reflection of retail investor influence.
ContextLogic, which recently reached meme-stock status, is reopening its offices in San Francisco for employees in the Bay area to return if they choose. ContextLogic, which has 1,100 employees, is giving its staff a choice of whether they’d like to continue working remotely, return to the office or a combination of the two.
The company, whose stock has rallied 25% in the past week, also revealed that it will be adding more than 650 jobs in more than a dozen countries this year to keep up with its growth. The latest hires will be on top of a 25% increase in its staff year-to-date. Individual investors are targeting the USD 14-16 range for the stock, which is currently trading at just under USD 14 per share.
This article was originally posted on FX Empire
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