Déjà vu? GameStop Shares Shoot Up Again, Gaining 100% in Value
The January GameStop swirl caused one of the biggest disruptions on Wall Street since the markets meltdown presaging the 2008/09 financial crisis.
GameStop's shares climbed nearly 104 percent on Wednesday and more than 60 percent in pre-market trading on Thursday.
The price surge coincided with Reddit's "r/WallStreetBets" board – where individual traders plotted to bring down the hedge funds which shorted the company's stock last month – crashing on Wednesday.
In January, the trading frenzy, which saw amateur investors buying and holding GameStop's shares, caused its stock to jump around 1,600 percent in a matter of days. As a result, a total of around $70 billion was lost by the short-selling Wall Street hedge funds.
The chain of events even led to a restriction on buying GameStop stocks by the Robinhood trading app, which made the company’s shares easily accessible – this enraged its users and its rating plummeted. Robinhood's co-founder Vladimir Tenev said that it was forced to act due to pressure from the National Securities Clearing Corporation, which settles stock trades between brokers.
The price surge coincided with Reddit's "r/WallStreetBets" board – where individual traders plotted to bring down the hedge funds which shorted the company's stock last month – crashing on Wednesday.
In January, the trading frenzy, which saw amateur investors buying and holding GameStop's shares, caused its stock to jump around 1,600 percent in a matter of days. As a result, a total of around $70 billion was lost by the short-selling Wall Street hedge funds.
The chain of events even led to a restriction on buying GameStop stocks by the Robinhood trading app, which made the company’s shares easily accessible – this enraged its users and its rating plummeted. Robinhood's co-founder Vladimir Tenev said that it was forced to act due to pressure from the National Securities Clearing Corporation, which settles stock trades between brokers.