Last year, GameStop Corp. (GME) saw a significant change in its leadership, with activist investor Ryan Cohen appointed as CEO. Additionally, in its third-quarter earnings report, the company announced a new investment policy, allowing GME to invest in equity securities. On top of that, the company’s Board authorized Cohen to manage the company's securities portfolio.
Wedbush Securities analyst Michael Pachter termed the new investment move as "alarming" and "inane." Moreover, this investment style could lead to an increase in meme activity in the stock. Although social media is likely to keep the hype surrounding meme stocks alive in the foreseeable future, this could also lead to heightened volatility.
