What happened

Shares of computer audio specialist Turtle Beach (NASDAQ:HEAR) soared on Friday. Share prices rose as much as 16.8% at noon EST. Three hours later, the stock had backed down to a milder 11.2% gain. Turtle Beach can thank video game retailer GameStop (NYSE:GME) for this sudden surge.

So what

GameStop reported its holiday sales on Friday, showing revenues 5% below the year-ago period but a 29% increase in sales of gaming controllers and headsets. GameStop's shares rose as much as 7.1% on the news, but Turtle Beach skyrocketed on this independent evidence of solid demand for gaming headsets over the holidays.

A happy gamer equipped with console controller and headphones.

Image source: Getty Images.

Now what

Owning Turtle Beach shares is not for the faint of heart. Share prices have now surged 700% higher in 52 weeks, but also 40% lower in six months. These days, the stock is tightly related to so-called Battle Royale games such as Fortnite and PlayerUnknown's Battlegrounds, where a good audio headset helps players collaborate and survive. These games absolutely ruled the roost in 2018, and GameStop's report points to solid demand for more headsets even now.

Personally, I can't help but wonder how long this trend will last and how many more headsets Turtle Beach can shift before it ends. Today's jump makes sense, but I'm still not a buyer of Turtle Beach (nor of GameStop, for that matter) today.

Check out the latest Turtle Beach and GameStop earnings call transcripts.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium advisory service. We’re motley! Questioning an investing thesis -- even one of our own -- helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.