Shares of GameStop Corp. (NYSE:GME) surged more than 16% in Tuesday’s extended trading after chairman Ryan Cohen raised his stake in the videogame retailer.
What Happened: Cohen bought another 100,000 shares of GameStop on Tuesday through his investment firm RC Ventures, according to a regulatory filing.
The billionaire investor now owns a total of 9.10 million GameStop shares, while his stake in the company has increased to 11.9%.
See Also: Chewy, GameStop, Bed Bath & Beyond: How Have Ryan Cohen's E-Commerce Bets Performed?
Why It Matters: Cohen, one of GameStop’s largest shareholders, has been vocal about closing underperforming stores and moving the videogame retailer into more e-commerce growth initiatives.
Cohen is also the co-founder and former CEO of online pet supplies retailer Chewy Inc. (NYSE:CHWY). The company has a huge following for its fast shipping as well as automatic deliveries of food and supplies.
In early March, Cohen acquired a 9.8% stake in Bed Bath & Beyond Inc. (NASDAQ:BBBY) and urged the retailer to explore strategic alternatives that include separating the Buybuy Baby chain and a full sale of the company.
GameStop —a darling of the Reddit investor forum r/WallStreetBets and one of the most heavily shorted stocks last year — continues to see high interest from retail investors.
Price Action: GameStop shares closed 30.7% higher in Tuesday’s regular trading session at $123.14 and further rose 16.3% in the after-hours session to $143.20.
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