GameStop Corp (NYSE: GME) was up 30.72%, although there was no company-specific news release or regulatory filings driving up the stock, and it seems external factors might be at play. The surge seems to be driven by a broader rally of “meme stocks.” According to Quiver Quantitative data, there has been an increase in discussions regarding meme stocks on different social media sites. Furthermore, out-of-the-money option purchasing for these meme stocks has increased, generating a gamma crunch and pushing up prices.
On the day, just less than 14 million shares of the gaming retailer were traded, which was over four times the daily average volume. According to Dow Jones records, the last time GameStop shares traded in such a frenzy was in August 2021. However, the stock jumped following a Reddit post by Thump4 on Tuesday that proposed that the stock was trading at a 58.2% discount relative to its fifteen-month fair value.
HireRight Holdings Corporation (NYSE: HRT) shares were up 23.92% after the background screening services provider announced its Q4 earnings that topped analyst estimates on both top and bottom lines. This is the first time the company is reporting its earnings since it went public in November.
The company had $198.5 million in booking revenue surpassing analyst estimates of sales of $183.4 million. The company’s Q4 2021 revenue was up 33%. In terms of profitability, the company produced reported adjusted earnings of $0.32 per share, which topped the $0.07 that analysts had predicted the company would post. The adjusted EPS for the quarter is a notable turnaround from Q4 2020’s adjusted EPS loss of $0.06.
For fiscal 2022 the company expects revenue of between $805 and $820 million and adjusted net income to range between $105 million and $115 million. If the company hits the midpoint range of the revenue and net income prediction, it will suggest a YoY increase of 11% and 46%, respectively.
Bilibili Inc. (NYSE: BILI) surged 20.03% after the company, which is popular as the YouTube of China, delivered strong growth in Q4 2021. Revenue was up 51% to $907 million following growth in monthly paying subscribers. In addition, the company saw a 62% YoY growth in revenue to $3 billion for the full year attributed to robust growth in major segments besides gaming.
Operational metrics were also strong, with average monthly active users and average daily active users growing 35% and 34%. The company had MAU and DAU of 272 million and 72 million at the end of the year, respectively. Surprisingly net loss doubled to $1.1 billion.
For the first quarter of 2022, the company anticipates revenue of between 5.2 billion yuan and 5.5 billion yuan.