GameStop Stock Jumps To New Record
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GameStop shares surged to a record Monday, before pulling back and giving up much of their gains, the latest sign that frenetic trading by individual investors is leading to outsize stock-market moves. From a report:
Class A shares of the Texas-based games retailer surged as much as 145% to $159.18 in morning trading, before reversing course and briefly turning lower. By midday, the stock was up 27% at $82.55, up more than 330% in 2021. The rapid swings prompted the New York Stock Exchange to briefly halt trading multiple times. The rally has been fueled by individual investors, encouraging each other on social media to pile into GameStop shares and options. The buying pressure has led money managers to switch out of substantial bets that the stock would fall, analysts said. This resulted in a short squeeze, in which rising prices prompt investors to buy back shares they had sold short to cut their losses, pushing the stock higher still.
The company has become a high-profile battleground between bullish chatroom-driven day traders, especially on online platform Reddit, and hedge fund short sellers, who have been betting against the stock. GameStop has been the most-actively traded stock by customers of Fidelity Investments in recent sessions, with buy orders outnumbering sell orders by more than four-to-one, according to the brokerage. "We broke it. We broke GME at open," one Reddit user wrote Monday after the NYSE halted trading, referring to GameStop's stock-market ticker. The tussle over the company, with a modest market value of about $5 billion at Friday's close and four years of declining sales, exemplifies the increased sway of retail investors. Many poured into the market during the coronavirus lockdown, congregating on online platforms to swap trading ideas and to boast about winning bets.
via SlashDot
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