GameStop stock (GME) hits all-time high on r/WSB-fueled short squeeze, cuz YOLO
If you bought into Gamestop last summer, you are now rich thanks to possible market manipulation.
After being dragged near the ocean floor at $2 per share last summer, Gamestop (GME) has reached an all-time high stock valuation today. The recent surge in share price is seemingly the result of a short squeeze, in part the result of a concentrated effort by members of the r/WallStreetBets subreddit.
As a company, Gamestop has been hit rather hard in recent years as their brick and mortar retail operation has been losing steam. Their previous cash cow, used game sales, faces an uncertain future with the rise of digital distribution and e-commerce. Many pundits have predicted that Gamestop will experience a fate similar to that of Blockbuster Video.
Some market players have been shorting GME stock in hopes of profiting on the collapse, but may have over-extended themselves. An unorganized group of investors who frequent the r/WallStreetBets subreddit started buying shares in GME in order to put pressure on the large number of short positions. This activity has led to what is known as a short squeeze. This is a rapid boost in the stock price as a result of this pressure rather than traditional factors that would positively affect value, such as strong earnings reports.
Earlier this month, GME was trading around $20 per share butt reached over $60 in trading earlier today. It is one of the most volatile stocks on the market, with the New York Stock Exchange temporarily halting trading shortly after 12:00 PM ET.
Chris Jarrard posted a new article, GameStop stock (GME) hits all-time high on r/WSB-fueled short squeeze, cuz YOLO