Is Gamestop’s Stock Heading Towards Another Surge?
In a move that surprised even Redditors, Gamestop’s shares more than doubled in afternoon trading on Wednesday afternoon, said a Reuters report.
The shares soared nearly 104 per cent during the trading session, during which trading was halted several times. Several news reports stated that the rally began after 2.30pm (1930 GMT).
This is the second time that the video game retailer’s stock price surged, following a fierce rally in January that grabbed global headlines and placed Reddit's popular WallStreetBets forum in the spotlight.
However, even the forum’s users were caught offguard by Wednesday’s sharp move.
Many have expressed joy at the rise in shares.
"#GameStop whoosh $46 to $90 in one day!!!! Hold your hats, all," said one Twitter user.
No one really knows what caused shares to jump but several social media users are pointing it towards a tweet by investor Ryan Cohen, a major shareholder of Gamestop and founder of Chewy.com. He had tweeted a photo of a Mcdonald’s ice cream cone and a frog emoji. Several theories started to pop up online and it was enough for people start trading again.
There was also the announcement about Gamestop chief financial officer Jim Bell resigning, which could have been a contributing factor towards the rise in shares.
Could this be a return of the volatility that affected stock markets last month?
Gamestock’s stock continued to rally even in after-hours trading, so it may be a while till investors (and the rest of the world) hear the end of "stonks”.