Helena Lyng Blak
2 weeks ago

GameStop Stock Spikes

GameStop surges ahead: Roaring Kitty returns to X, sparks new rally
rafapress / DepositPhotos
rafapress / DepositPhotos

On Monday, May 13, 2024, Reuters reported that GameStop shares jumped a dramatic 40% in pre-market trading. 

This spike occurred following the return of infamous ‘meme stock influencer’ Roaring Kitty–also known as DeepFuckingValue on Reddit, or Keith Gill in real life–to X. 

Gill was a pivotal player in the 2021 GameStop stock surge and short squeeze. 

What was the GameStop short squeeze?

Perhaps the most notable tale of a meme stock is the saga surrounding GameStop.

GameStop, an American retailer specializing in video games, faced a downturn in the 2010s as the retail sector pivoted online and video games shifted from physical to digital formats.

In 2021, amid the pandemic, users on the Reddit forum r/WallStreetBets debated whether GameStop's stock was undervalued. They noticed its short interest exceeded 100%—meaning the stock was shorted more than the total number of available shares.

This fact, combined with a desire to “troll” and a goal to disrupt Wall Street investors who had bet against the stock, led the subreddit to collectively inflate the stock's price.

As the story gained momentum, people beyond r/WallStreetBets joined the fray, eager to participate. By January 26, short-sellers had incurred losses of $5 billion on GameStop alone.

The situation escalated as the meme and buying frenzy continued. The White House started monitoring the events. Gill himself faced investigation by the US government. In an ironic twist, the trading platform Robinhood restricted GameStop trades. This led to lawsuits, a congressional hearing, and significant financial rescues.

What is going on with GameStop now?

Eventually, GameStop’s stock price stabilized but had been on a general decline since January 2021. 

That was until this month. Starting with the month of May 2024, GameStop has seen a steady rally, and is up 73.56% in the last month. 

At the market open on Monday, GameStop’s shares had surged by roughly 54%. 

At around $27, the shares are, however, still some ways away from its January 2021 peak of $81.25.

Disclaimer

The information provided by this Site is for general informational purposes only. All information on the Site is provided in good faith, however we make no representation or warranty of any kind, express or implied, regarding the accuracy, adequacy, validity, reliability, availability or completeness of any information on the Site.

More News

4 hours ago Israeli Airstrike Hits Rafah Tent Camp Israeli airstrike on Rafah camp kills dozens, raising international alarm.
5 hours ago Meta and Call of Duty Maker Sued by Families of School Shooting Victims Families of the 2022 Uvalde school shooting victims file lawsuits against major corporations and officials, claiming they contributed to the tragedy.
7 hours ago Walmart and Capital One Call It Quits on Partnership Walmart and Capital One announce the end of their six-year card partnership amidst legal disputes.
7 hours ago US Market Open - May 27, 2024: Wall Street Wavers but Nasdaq Soars Daily update from the US market open.
9 hours ago Crypto, Currently: May 27, 2024 - Ethereum Leads Weekly Surge, Bitcoin Holds Steady Daily update on Ethereum, Bitcoin, and more!
1 day ago Debunking the headline: US GDP grows by a third ahead of EU in 15 years Europeans need not worry as much as these articles would suggest.
1 day ago Empowering Women Could Boost Economic Growth, Says IMF Economists Discover how gender equality initiatives could transform economies in Japan and Korea.