Why GameStop Corp. (GME) Soared on Monday

We recently compiled a list of the 10 Firms Begin Trading Week With Impressive Gains. In this article, we are going to take a look at where GameStop Corp. (NYSE:GME) stands against the other stocks.

The stock market kicked off the trading week on a positive note, with all major indices clocking in gains, as investors brushed off President Donald Trump’s latest imposition of hefty tariffs on steel and aluminum products from Canada and Mexico.

The Dow Jones rose 0.38 percent, the S&P 500 grew 0.67 percent, while the Nasdaq rallied 0.98 percent.

Ten companies mirrored a broader market optimism amid a series of positive catalysts sparking buying appetite.

In this article, we will take a look at which companies led the charge and explore the reasons behind their performance.

To come up with Monday’s best performers, we considered only the stocks with at least $2 billion in market capitalization and $5 million in daily trading volume.

A gamer playing a game on one of the specialty retail company’s gaming platforms.

GameStop Corp. (NYSE:GME)

GameStop Corp. shares rallied by 9.66 percent on Monday to finish at $27.12 apiece as investors reacted positively to a photo of GME CEO Ryan Cohen and Strategy Chairman Michael Saylor.

While the photo did not mention any reason why Cohen sat down with Saylor, investors were quick to speculate a brewing cryptocurrency strategy between the two companies.

It can be learned that the gaming company had already ventured into cryptocurrency in 2022 with the establishment of a now-defunct cryptocurrency wallet that sent its share prices skyrocketing for days after the launch.

Just recently, reports also surged of GME closing several stores in the US, often with little to no warning. Since 2020 alone, GME has been shutting down more than 700 stores as the COVID-19 pandemic heavily weighed on its profits, further aggravated by a shift in consumption to online sales and video game makers resorting to digital-only access to games.

Overall GME ranks 9th on our list of Monday’s best performers. While we acknowledge the potential of GME as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as GME but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap.

Disclosure: None. This article is originally published at Insider Monkey.