On Reddit and chat forums, day traders were shouting it from the rooftops: Buy GameStop!
Lots of people did, sending the shares of the once-moribund mall retailer to new highs in what has become a gladiator match between so-called redditors and Wall Street shorts. GameStop Corp. surged as much as 145% to $159.18 Monday morning, before sinking below Friday’s close only to bounce back up again to close Monday at $76.79, up 18%.
The move, which extended GameStop’s gains for the year to more than 300%, is the latest sign that frenetic trading by individual investors is leading to outsize stock-market swings.
The volatility prompted the New York Stock Exchange to briefly halt trading nine times. About 175.5 million shares changed hands Monday, the second-largest one-day total on record, according to Dow Jones Market Data. That compares with the 30-day average of 29.8 million shares.
The rally has been fueled by 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, investors and 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 Link LonkJanuary 26, 2021 at 05:27AM
https://www.wsj.com/articles/gamestop-shares-surge-toward-fresh-record-ahead-of-opening-bell-11611579224
GameStop Stock Jumps to New Record - The Wall Street Journal
https://news.google.com/search?q=fresh&hl=en-US&gl=US&ceid=US:en
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