What’s Behind GameStop’s Gains
GameStop Spikes 145%, then Falls
GameStop’s (GME) Class A shares soared as much as 145% yesterday before ticking downward later in the day. Monday marked the third trading day in a row that GameStop saw double-digit gains.
So far in 2021, the Texas-based video game retailer’s stock has climbed more than 300%. The breakneck rally caused the New York Stock Exchange to pause trading for GameStop several times. GameStop’s gains have largely been fueled by individual traders that encouraged one another to invest in GameStop on Reddit and other social media platforms.
GameStop’s gains have demonstrated just how much influence individual traders can have collectively.
Short Sellers Remain Skeptical
While some traders are cheering GameStop’s rise, many short-sellers are skeptical. On Friday Andrew Left, a Managing Partner at Citron Research, shared a video describing five reasons why he expects GameStop shares to fall to $20. However, enthusiastic traders were largely undeterred by this information.
As of market close yesterday shares were up 18% and trading at $77.77. Investors will be eager to see what lies ahead for GameStop after a roller coaster ride of a month.
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