GameStop's stock has surged 1,500% in nine months after activist investors take board seats along with a massive short squeeze Posted January 19, 2021 by Deimos Tags: business, gamestop, stock market, short selling, games, retail, short squeezes, boards
Full Answer
Why is GameStop’s stock up 700% in 2 weeks?
Nine months ago, GameStop stock bottomed out at $2.80 a share, a reflection of the myriad problems facing the retailer specifically and brick-and-mortar game retail as a whole. As of Tuesday morning, though, that stock price is hovering around $40 a share (peaking at $44.74 as of this writing), with the vast majority of those gains coming in the last couple of weeks.
Is the GameStop short squeeze over?
Jan 20, 2021 · How GameStop Stock Surged 1,500% In Nine Months Hmmm, everyone stuck at home watching TV and playing video games might have something to do with this. Analysts suggest the recent surge in GameStop's stock price is the result of a massive short squeeze bubble that will pop eventually. But beyond the sky-high valuations of recent weeks, analysts ...
Why is GameStop’s GME up 16x?
Jan 19, 2021 · Gaming the System: How GameStop Stock Surged 1,500% In Nine Months (arstechnica.com) 39. An anonymous reader quotes a report from Ars Technica: Nine months ago, GameStop stock bottomed out at $2.80 a share, a reflection of the myriad problems facing the retailer specifically and brick-and-mortar game retail as a whole. As of Tuesday morning, …
Is there still a demand for GameStop?
Feb 26, 2021 · Beginning Jan. 12, the stock price of GameStop (GME) spiked from a little less than $20 to a lofty $347 over a few days. The surge lasted for about a week before prices started to lower again. At the time of writing, GME is hovering at $101, after a another recent surge, and remains volatile.
How does GameStop stock surged?
How did GameStop stock skyrocket?
How high is GameStop stock predicted to go?
The 3 analysts offering 12-month price forecasts for GameStop Corp have a median target of 87.70, with a high estimate of 90.00 and a low estimate of 30.00. The median estimate represents a -26.51% decrease from the last price of 119.34.
How high will GameStop stock be in 2021?
Who made GameStop stock rise?
Who caused GameStop stock?
Is GameStop a buy or sell?
Will GameStop go up tomorrow?
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Munafa value: 10 as on 09 Mon May 2022.
| Downside target | 89.85 |
|---|---|
| Upside target | 115.25 |
| Upside target | 120.1 |
| Upside target | 125.49 |
Is GameStop a buy?
Who shorted GameStop?
By January 28, 2021, Melvin Capital, an investment fund that heavily shorted GameStop, had lost 30 percent of its value since the start of 2021, and by the end of January had suffered a loss of 53 percent of its investments.
What happened to GameStop January 2021?
How overvalued is GameStop?
The investor who has been credited with sparking interest in the video game retailer buys more shares
Evan is a Senior Technology Analyst at The Motley Fool. He was previously a Senior Trading Specialist at Charles Schwab, and worked briefly at Tesla. Evan graduated from the University of Texas at Austin, and is a CFA charterholder.
What happened
Shares of GameStop ( NYSE:GME) surged by as much as 20% today after Keith Gill, known by "Roaring Kitty" on social media and a more vulgar username on Reddit, increased his stake in the video game retailer. Gill has been widely credited with driving retail interest in GameStop, which culminated in a gargantuan gamma squeeze last month.
So what
Gill posted an update on Reddit's WallStreetBets forum on Friday evening showing that he had increased his position from 50,000 shares over two weeks earlier to 100,000 shares . The fresh investment increased Gill's average cost basis from $14.89 to $26.80.
Now what
The news comes after Gill testified virtually last week in front of the U.S. House Committee on Financial Services, which has been examining the saga over concerns around potential market manipulation and the possibility of individual investors being hurt.
1. There Are No Gains or Losses Until You Sell
Whether the stock market increases by 20% or drops by 40%, these gains and losses don’t matter until it’s time to sell your holdings. That means as a long-term investor, you shouldn’t worry about the daily battles of the stock market. The GameStop situation and other volatile stock patterns will pass by as short-term blips.
2. Invest in Index Funds and Know Them
Investing long term in index funds allows you to buy a spread of the entire market or index you’re after. For example, you can invest in the top 500 U.S. companies, all at once. By buying into a large spread, you buy into a little bit of everything and offset potential risks that occur with these volatile manipulations or any one stock.
3. Stay Diversified
Though it’s good to be a long- term investor in the stock market, it’s also important to diversify your passive income in other wealth building streams such as real estate.
These meme stocks have been consistently volatile
Rich has been a Fool since 1998 and writing for the site since 2004. After 20 years of patrolling the mean streets of suburbia, he hung up his badge and gun to take up a pen full time.
Key Points
The trio responded to the market indexes recovering from yesterday's fall.
What happened
Shares of GameStop ( NYSE:GME), Express ( NYSE:EXPR), and Newegg Commerce ( NASDAQ:NEGG) all rose 10% or more in trading Tuesday as the stock market rebounded sharply after yesterday's sell-off.
So what
There was no company-specific news to account for the strong performance. But they all have been designated so-called meme stocks that have ardent backers among retail investors, and they tend to exhibit extreme volatility on good news, bad news, or no news at all.
Now what
The primary point of contention for the stocks was the level of short interest in the shares, which was grossly inflated at the time.
Completely Efficient Markets Are Not Realistic
Even staunch advocates for efficient markets, generally don’t believe markets are accurate everywhere all the time. There needs to be some so-called friction in markets in order for investors to exploit and make money.
Ultimately Prices Are Where Buyers And Sellers Meet
Finally, prices are where buyers and sellers meet. No one argues that efficient markets are broken when a company that’s due to be taken private at a fixed cash price doesn’t see it’s stock rally because it reports a strong quarter before the deal closes.
