The stock market has had a lot to consider in the new year, and hopes for 2021 are vying against concerns that things might not live up to the perfect scenarios many optimistic investors seem to have in mind. As of 11:15 a.m. EST, the Dow Jones Industrial Average (DJINDICES:^DJI) was down 14 points to 31,055. However, the S&P 500 (SNPINDEX:^GSPC) rose six points to 3,808, and the Nasdaq Composite (NASDAQINDEX:^IXIC) picked up 62 points to 13,135.
The biggest gainer early on Wednesday morning was GameStop (NYSE:GME). Meanwhile, electric vehicle stocks continued to capture a lot of attention from Wall Street, and a surprise announcement from seemingly unrelated WiMi Hologram Cloud (NASDAQ:WIMI) had investors excited about its future.
Delayed reaction sends GameStop higher
Shares of GameStop soared more than 50%. The move higher appeared to come from a possible short squeeze following an announcement from the video game retailer earlier in the week.
On Monday, GameStop agreed to boost the size of its board of directors from 10 to 13 members. That opened the door for the appointment of three directors suggested by activist investors at RC Ventures. RC has taken a stake of 13% to 14% in GameStop and has been critical of the company's past strategy. RC founder Ryan Cohen will now be among the new members of the board.
Yet GameStop has also shown some signs of life lately. Holiday sales weren't the best, but comparable-store sales were higher from year-ago levels, and e-commerce revenue more than quadrupled year over year.
The gains took GameStop stock to its best levels in five years. That's a big turn for a company still facing long-term disruption to its traditional business model. But shareholders seem convinced that RC can help GameStop find a way forward that will help the retailer not just survive but thrive.
WiMi drives higher
Meanwhile, shares of WiMi Hologram Cloud jumped almost 20%. The Chinese company is primarily involved in the use of holograms in advertising, but big news from WiMi centered on potential uses of its technology for the electric vehicle industry.
WiMi has obtained a patent for a device that will use holographic technology to help with autonomous driving capabilities in electric vehicles. Specifically, WiMi believes that 3D holographic pulse laser processing devices will aid in building 3D optical holography models that in turn can help guide AI systems in self-driving vehicles.
Investors also seem to share WiMi's belief that the technology could have uses in other industries. Among them are medical imaging and unmanned aerial vehicles, as well as in the use of holographic spectrometers and other scientific equipment.
Certainly, holography has been a technology with endless potential for advancement. In the entertainment industry, WiMi has produced a soft light cinema headset, for which it recently got certification from Chinese regulatory authorities. Users can connect the headset to drones and professional cameras in order to enhance their experience.
The booming electric vehicle industry is attracting a number of companies trying adapt their capabilities to address some of the biggest obstacles to mainstream adoption. As long as investor interest is strong, you can expect companies like WiMi to appear out of nowhere with groundbreaking technology that has the possibility of creating major advances and making what once seemed impossible a reality.