Full Answer
Why did the price of GameStop stocks jump so suddenly?
Jan 28, 2021 · Guilherme Sorbara, Journalist. April 11, 2021. Recently you may have remembered about Gamestop being all over the news due to a huge rise in its stock. The stock went from 65$ per share all the way up to 347.5$ in under 5 days, it nearly went up by 600%. The cause of this was a short squeeze.
Why did everyone Buy GameStop?
The Reddit forum WallStreetBets was integral to the rise of GameStop stock. Though the group has been around for some time, it became more popular as the pandemic dragged on. People who were out of work, out of school, and under stay …
Why is GameStop stock going up?
22 rows · The all-time high GameStop stock closing price was 347.51 on January 27, 2021 . The GameStop 52-week high stock price is 344.66 , which is 135.8% above the current share price. The GameStop 52-week low stock price is 77.58 , which is 46.9% below the current share price. The average GameStop stock price for the last 52 weeks is 169.04 . For more information on …
Why did GameStop skyrocket?
Jan 25, 2021 · by Stephen Silver For much of the last few years, GameStop has been seen as a declining brick-and-mortar retailer. For the entire first half of …
What is a citron short report?
Citron is best known for its “short reports”, which demonstrate through research and analysis that specific companies are likely to lose value.
Is Robinhood based on financial distress?
No. In an attempt to rehabilitate its image, Robinhood attempted to explain that the decision was strictly based on financial distress. The volume of trades exhausted Robinhood’s resources, and trading had to be restricted to stay in compliance with regulatory requirements.
Did Robinhood force the sale of their shares?
In some cases, members reported that Robinhood forced the sale of their shares or cancelled outstanding orders. Robinhood’s decision to restrict GameStop trading drew heavy criticism across the board, with complaints from traders, members of Congress, and a wide variety of big names in business and entertainment.
Will Robinhood lose members?
It is not yet clear how the events of late January will impact Robinhood, both in the short-term and the long-term. Certainly, it has lost the trust of many clients, and the platform is likely to lose members. Robinhood had planned an IPO for 2021, and prior to January, it was expected to be hugely successful.
Did hedge funds lose billions on GameStop?
Hedge funds lost billions after betting that GameStop prices would go down, and the market as a whole had its worst week since October 2020. Retail trades were coming in so quickly that commission-free investing platform Robinhood had to limit buys for many of its members, prompting furious responses – and at least a dozen lawsuits. ...
What is the maximum loss of a stock?
When owning, or being long, a stock, your maximum loss is the amount of your investment. As long as you're not using margin, you can own a stock for forever and can't be forced to sell. If you believe a stock is undervalued, you having the luxury of time for the market to appreciate it and the stock to hopefully rise.
What happens when you short a stock?
If you believe the shares of a company will fall, you "borrow" shares via your broker, sell them immediately, and then hope to "return" them by buying them back at a lower price, keeping the difference.
What is a counterparty in call options?
When investors purchase call options looking for leveraged gains, there is a counterparty - someone on the other side of the trade. In some cases, that counterparty is long GME stock and is selling a covered call, trading away upside in exchange for additional income/premium.
Why is the interest rate higher in a short position?
But in general, the interest rate is higher when the demand to borrow shares is greater. So the carrying cost of holding a short position in a heavily shorted name can make it less appealing to short sellers.
Why is short interest above 100% rare?
In practice, this is rare, for several reasons. The greater the short interest in a stock, the higher the risk of a short squeeze. Many investors will avoid "crowded shorts" for this reason. Most brokers charge interest on borrowed stocks.
When did Chrysler go bankrupt?
Many automakers were viewed as bankruptcy risks, and in fact, Chrysler filed bankruptcy in April 2009 and General Motors ( GM) followed a month later.
Is GM short interest?
GM has almost no short interest and has traded in a 10% range over the past two weeks. On Sunday, Robinhood significantly relaxed restrictions and only 8 stocks are now restricted. This moving target of what is allowed should erode investors trust in the Robinhood platform.
How much did GameStop stock close on Jan 13?
Some retail traders jumped on GameStop's announcement, and in just a few days the stock closed at $31.40 a share on Jan. 13 -- a spike of more than 50% since the Jan. 11 announcement.
How much is GameStop down in 2020?
In early December, GameStop reported that net sales plummeted in the third quarter of its fiscal year 2020, down more than 30% compared to the same time period in 2019. The retailer attributed this drop in sales to a number of reasons, including an "11% reduction in the store base."
How many members are there in GameStop 2021?
On Jan. 27, the group had some 3 million members. By Feb. 3, it had more than 8 million. Here is a timeline of how the GameStop saga unfolded. GameStop store logo on 14th Street at Union Square, Jan. 28, 2021, in New York City.
When will Janet Yellen meet with regulators?
Feb. 4, 2021: Janet Yellen meets with regulators. Treasury Secretary Janet Yellen publicly addressed the saga during an interview with "Good Morning America" on Feb. 4, saying she was meeting with regulators to discuss if the agencies need to take "further action.".
Who is Citron Research?
Citron Research, a stock research firm run by famous short-seller Andrew Left, took aim at those buying GameStop stock in a snappy tweet on Jan. 19. Shares opened that day at $41.55.
Who are the directors of GameStop?
GameStop announced in early January that it was appointing three new directors -- Alan Attal, Ryan Cohen and Jim Grube -- to its board. Cohen is the founder and former chief executive of the e-commerce platform Chewy and one of the largest shareholders in GameStop through the private firm he operates, RC Ventures.
Who is the CEO of SpaceX?
SpaceX owner and Tesla CEO Elon Musk appears on the red carpet for the Axel Springer award, in Berlin, Germany, Dec. 1, 2020. Just after markets closed on Jan. 26, Elon Musk tweeted the term used heavily in the Reddit page to refer to GME -- "Gamestonk!!". -- and a link to the r/wallstreetbets forum.
How much did GameStop stock cost in 2020?
For the entire first half of 2020, its stock was trading for less than $10 a share, even as the pandemic led to a surge in the usage and popularity of video games. GameStop, in the early days of the pandemic, got a wave of bad press for declaring itself “essential,” and for one store reportedly ordering employees to return to work ...
Who is Stephen Silver?
Stephen Silver, a technology writer for the National Interest, is a journalist, essayist and film critic, who is also a contributor to Philly Voice, Philadelphia Weekly, the Jewish Telegraphic Agency, Living Life Fearless, Backstage magazine, Broad Street Review and Splice Today.
Is GameStop a declining company?
For much of the last few years, GameStop has been seen as a declining brick-and-mortar retailer.
