Grasp the Buzz of the GameStop Stock.
GameStop has been the center of attention in the financial world yet again! This company, known for its videogame retailing, saw its shares skyrocket impressively last Tuesday. Remember that unforgettable meme stock rally, ignited by Roaring Kitty’s inaugural online post in a three-year gap? It’s back in action!
GameStop stock soared by an incredible 98%, building on the heels of a 74% rise the previous day.
Simultaneously, AMC Entertainment saw its shares catapult by a whopping 110%. Despite its successful equity capital raise amounting to $250 million on that frantically animated trading Monday.
But the action was not limited to GameStop and AMC alone! Other stocks catching the “meme stock” fever also leaped noticeably at the market’s opening. Shares of once-iconic smartphone titan BlackBerry surged by 17%. Koss, a renowned headphone creator, experienced a 40% climb, ensuring they weren’t left out of the upward trend.
Many largely credit the rekindled interest in meme stocks to a viral social media update from Keith Gill, the man behind “Roaring Kitty.” Gill shared a meme of a highly absorbed video gamer. A symbol widely used by gamers to signify their deep engagement in the game. This post was Gill’s first in three years and captured attention rapidly, drawing in over 23 million views.
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Retail investors are evidently showing renewed bullish tendencies. Prompting them to embrace greater risks,” observed Neil Wilson, chief market analyst at Finalto. Interestingly, Wilson further noted that GameStop’s last earnings report was far from impressive. Revealing no fundamental justification for the current stock movement.
GameStop announced job cuts and reported a dip in revenue for the fourth quarter in late March. Hinting at an increase in competition from ecommerce players. The ongoing developments unmistakably revive memories of the 2021 saga.
Gill, a previous marketer for Massachusetts Mutual Life Insurance and Reddit’s DeepF——Value. Spearheaded a group of day traders in a spirited rally into GameStop stock and called options between 2020 and 2021.
GameStop stocks, which peaked at a record high of $120.75 in early 2021, plummeted along with other meme stocks as interest waned. GameStop’s stocks have been on a downward trajectory in recent years. Hitting a three-year trough of $9.95 last month but closing Monday at $30.45.
As per analytics firm Ortex Technologies, short sellers of GameStop supposedly suffered losses amounting to $868 million as of the previous Monday’s close and totaling an astounding $1.26 billion for May.
At Tuesday’s early trading price of $46 per share, Ortex Technologies revealed that GameStop’s short sellers had lost an additional $1.04 billion. This loss pushed May’s total losses just over a staggering $2.3 billion.
These recent events with GameStop stock echo the scenario of January 2021 as data from Ortex Technologies unveils the highest short interest levels since 2022, and a fantastic 150% price increment within a mere two days.
