GameStop Stock Price Surges As Meme-Stock Frenzy Returns: Report
Key Points:
- GameStop’s share price doubled recently due to a post by “Roaring Kitty”, adding $6 billion to its market value.
- Despite the surge, GameStop’s stock would need to quadruple to reach its 2021 peak, and high borrowing costs are reducing retail traders’ risky holdings.
GameStop stock price surged, doubling due to a post by “Roaring Kitty”. Yet, the increase doesn’t match the 2021 frenzy due to changes in the trading landscape and economic context.
GameStop’s share price more than doubled recently, reminiscent of the meme-stock frenzy of 2021. The surge was triggered by a single post by Keith Gill, a.k.a. “Roaring Kitty”, the retail-trading icon who sparked the initial craze.
GameStop Stock Price Surge Triggered by Single Post
Within an hour of his post, GameStop gained approximately $6 billion in market value, and other meme stocks like AMC Entertainment also rallied. However, this latest surge in GameStop shares doesn’t match the intensity of 2021, as per Bloomberg.
Back then, retail traders, armed with time and pandemic-era stimulus money, drove GameStop’s shares up over 1,000% within a few days. Today, many of these traders are back at work and dealing with higher interest rates.
The trading landscape has also changed significantly. Casinos and racetracks are now open, providing alternative avenues for betting.
Furthermore, professional short sellers have become cautious about targeting companies with small share floats, fearing a social media-driven squeeze.
Readmore: Crypto Market Sees V-shaped Reversal: Perfect Time For Buyers?
Changes in Trading Landscape and Short Sellers’ Approach
Options trading volumes are elevated but don’t match the levels seen in 2021. On the most active day, GameStop saw 8.5 million contracts change hands. Moreover, retail traders aren’t the sole drivers of the stock gains this time, with sell orders nearly mirroring buys.
Despite these developments, GameStop’s stock would need to quadruple from its current close to reach its intraday peak.
The broader economic context has also changed, with high borrowing costs reducing retail traders’ holdings in risky assets. Thus, while the recent activities are reminiscent of the 2021 rush, it’s not quite there yet.
| DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing. |
Author
News
GameStop Stock Price Surges As Meme-Stock Frenzy Returns: Report
Key Points:
- GameStop’s share price doubled recently due to a post by “Roaring Kitty”, adding $6 billion to its market value.
- Despite the surge, GameStop’s stock would need to quadruple to reach its 2021 peak, and high borrowing costs are reducing retail traders’ risky holdings.
GameStop stock price surged, doubling due to a post by “Roaring Kitty”. Yet, the increase doesn’t match the 2021 frenzy due to changes in the trading landscape and economic context.
GameStop’s share price more than doubled recently, reminiscent of the meme-stock frenzy of 2021. The surge was triggered by a single post by Keith Gill, a.k.a. “Roaring Kitty”, the retail-trading icon who sparked the initial craze.
GameStop Stock Price Surge Triggered by Single Post
Within an hour of his post, GameStop gained approximately $6 billion in market value, and other meme stocks like AMC Entertainment also rallied. However, this latest surge in GameStop shares doesn’t match the intensity of 2021, as per Bloomberg.
Back then, retail traders, armed with time and pandemic-era stimulus money, drove GameStop’s shares up over 1,000% within a few days. Today, many of these traders are back at work and dealing with higher interest rates.
The trading landscape has also changed significantly. Casinos and racetracks are now open, providing alternative avenues for betting.
Furthermore, professional short sellers have become cautious about targeting companies with small share floats, fearing a social media-driven squeeze.
Readmore: Crypto Market Sees V-shaped Reversal: Perfect Time For Buyers?
Changes in Trading Landscape and Short Sellers’ Approach
Options trading volumes are elevated but don’t match the levels seen in 2021. On the most active day, GameStop saw 8.5 million contracts change hands. Moreover, retail traders aren’t the sole drivers of the stock gains this time, with sell orders nearly mirroring buys.
Despite these developments, GameStop’s stock would need to quadruple from its current close to reach its intraday peak.
The broader economic context has also changed, with high borrowing costs reducing retail traders’ holdings in risky assets. Thus, while the recent activities are reminiscent of the 2021 rush, it’s not quite there yet.
| DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing. |
Other Posts
Related Posts
Latest
MARA Convertible Notes Offering Now Completed With $1 Billion Raised
Press Release
Arcana Network Launches the First Ever Chain Abstraction Wallet, Ushering a New Era of Multi-Chain Transactions
