GameStop mania returns with new exec

GameStop mania was reignited Monday after the video-game retailer tapped Chewy founder and activist investor Ryan Cohen to helm its e-commerce business shift.

The stock surged 53% to $210.87, the highest in five weeks, at 12:41 p.m. in New York. It closed Monday at $194.50, up 57.45, or 41.92%.

The rally came after the Grapevine, Texas-based company said Cohen would spearhead a new committee to help the transition to e-commerce.

The follow-through from Cohen comes after a pair of tweets from the investor spurred a wave of trading in the past two weeks. Most recently, shares spiked on Thursday after Cohen tweeted an apparent screenshot from a Pets. com television ad. A picture of an ice cream cone tweeted by Cohen on Feb. 25 helped spark a massive rally, with the stock doubling at one point during the session.

GameStop’s market value jumped to $14.3 billion as retail investors praised the move on social media sites like Twitter and Reddit. The swing in the retailer’s size is still a far cry from the $33.7 billion value it hit on Jan. 28 when it briefly became the largest company in the Russell 2000 Index.

GameStop’s rally has the stock on pace for a fourth day of gains, which has resulted in a 78% climb for the retailer compared to the broader market trading little changed. Monday’s jump came as trading volume roared back. With more than 39 million shares changing hands by 12:45 p.m., volume was more than double what had been seen in the past week.