In a somewhat unexpected turn of events, the former hedge fund manager and energetic TV personality, Jim Cramer, issued a ‘Buy’ rating for the most famous meme stock, GameStop (NYSE: GME), on Thursday, September 17.
Specifically, the ‘Mad Money’ host explained that the battered video game retailer has turned into a profitable company that is making at least a partially successful effort to achieve a turnaround.
Cramer also said that GameStop ‘works’ for him and effectively gave GME shares a ‘Buy’ recommendation:
I think it actually works for me. It’s a profitable company, and they’re trying to turn it around, and I think they’re having some success. I’m willing to say that stock is a buy.
Notably, Jim Cramer’s endorsement came amidst a relatively decisive GameStop stock rally. GME equity is, at its latest closing price of $22.77, 21.05% up in September.
Furthermore, the company’s recent performance erased the previous 2026 losses, and the equity was, at the latest close, 10.43% in the green year-to-date (YTD).
Why GameStop stock is soaring in September
Meanwhile, GameStop has been benefiting from multiple positive developments since September started.
Not only has the equity started slowly rising already in late August, but the company posted a strong earnings report for the second quarter (Q2) last week, which featured record operating income and strong demand for collectibles.
Additionally, senior company personnel took to the stock market between September 8 and September 10 to show their confidence in the firm by purchasing its equity.
Indeed, during the two days, GameStop insiders acquired just under 1.1 million shares for more than $21 million.
As could, arguably, be expected, CEO Ryan Cohen was by far the biggest buyer, having purchased 1 million GME at an average price of $20.38 for a total of $20.37 million, per a September 10 Securities and Exchange Commission (SEC) filing.
Featured image via Shutterstock
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