Invest
GameStop shares halted after rallying 100%
The GameStop saga looks set to continue, with the bricks-and-mortar gaming company rallying over 100 per cent in a single trading session.
GameStop shares halted after rallying 100%
The GameStop saga looks set to continue, with the bricks-and-mortar gaming company rallying over 100 per cent in a single trading session.
Shares in GameStop (GME) were halted with less than 30 minutes remaining in the US trading session, after buyers pushed the price of the shares up 104 per cent to US$91.71.
GME’s share price had seen small rises throughout the day before catapulting after 3pm New York time, forcing the company to close early.
GameStop garnered worldwide attention after finding itself at the centre of last month’s “gamma squeeze”, when amateur investors utilised social media platform Reddit to coordinate their strike against Wall Street, driving the retailer’s price up by as much as 2,400 per cent.
This time around, the flurry of activity has led to an outage on Reddit’s WallStreetBets forum, the centre of last month’s craze.
Wall Street hedge funds lost billions in January after betting GME shares would fall, before a group of enthusiastic amateur investors propped up their value by selling the stock hard, borrowing stock and short-selling it.
The Reddit community, which has 2.8 million members, is full of users urging each other to keep pushing the stocks higher.
Key players from last month’s gamma squeeze, including Notorious retail investor Keith Gill, Robinhood, Citadel, Melvin and Reddit have all testified to a US financial services committee for their role in the saga.
But the latest surge will be without GameStop chief financial officer Jim Bell, who has announced he will resign on 26 March.
“Mr Bell’s resignation was not because of any disagreement with the company on any matter relating to the company’s operations, policies or practices, including accounting principles and practices,” GameStop said in a filing with the Securities and Exchange Commission (SEC).
RMIT’s senior lecturer of finance, Dr Angel Zhong, told nestegg the latest rally appears to be off the back of Mr Bell’s resignation.
“This change is interpreted as a positive signal to change the fundamental aspect of the company. The market seems to be positive on the future growth of the company,” she said.
However, the finance lecturer has warned investors against trying to capitalise on GameStop’s rally.
“I would like to also remind investors that: do not buy due to fear of missing out or irrational herding. While it is sensible to act on news and/or company announcement, but timing is also an important element. You may act on a news release at a wrong time, when the price has already reached the upper limit,” she concluded.
RELATED ARTICLES
About the author
About the author
Shares
DREST gears up for innovation with the appointment of new co-CEO and CTO
Luxury fashion and lifestyle mobile game DREST has announced significant leadership changes as it prepares for an exciting phase of development and expansion. Read more
Shares
Hope for investors scared by share and crypto crashes
As share markets and cryptocurrency take a beating following the tightening of monetary policy across the world, investors are contemplating their next move. Read more
Shares
Cannon-Brookes tries to block AGL demerger
Mike Cannon-Brookes is not giving up on AGL after the latter announced 15 June as the date of the demerger vote. Read more
Shares
Qantas set to acquire Alliance Aviation
The two airlines have entered into a scheme implementation deed. Read more
Shares
Bond and share investors may shrug off RBA’s rate hike
As mortgage holders reel from the prospect of having to reach deeper into their hip pockets to make bigger repayments following the Reserve Bank of Australia’s (RBA) interest rate hike from 0Read more
Shares
How to buy Shares: A beginner’s guide in 2022
So you want to get in on the stock market action? Congratulations, that’s an exciting step! But first, there are a few things you should know before you buy your first shares. Read more
Shares
Elon Musk chokes up on bid to swallow Twitter
The battle of the bird has intensified over the last week, as Tesla and SpaceX founder Elon Musk has ramped up his aggressive campaign to buy the entirety of social media giant, Twitter. Read more
Shares
How to Make Money in Short Selling
What is short selling? There is a common practice for people who actively trade in the stock market, which is to “buy low and sell high”, but what if you can still make money by doing the opposite? Read more
Shares
DREST gears up for innovation with the appointment of new co-CEO and CTO
Luxury fashion and lifestyle mobile game DREST has announced significant leadership changes as it prepares for an exciting phase of development and expansion. Read more
Shares
Hope for investors scared by share and crypto crashes
As share markets and cryptocurrency take a beating following the tightening of monetary policy across the world, investors are contemplating their next move. Read more
Shares
Cannon-Brookes tries to block AGL demerger
Mike Cannon-Brookes is not giving up on AGL after the latter announced 15 June as the date of the demerger vote. Read more
Shares
Qantas set to acquire Alliance Aviation
The two airlines have entered into a scheme implementation deed. Read more
Shares
Bond and share investors may shrug off RBA’s rate hike
As mortgage holders reel from the prospect of having to reach deeper into their hip pockets to make bigger repayments following the Reserve Bank of Australia’s (RBA) interest rate hike from 0Read more
Shares
How to buy Shares: A beginner’s guide in 2022
So you want to get in on the stock market action? Congratulations, that’s an exciting step! But first, there are a few things you should know before you buy your first shares. Read more
Shares
Elon Musk chokes up on bid to swallow Twitter
The battle of the bird has intensified over the last week, as Tesla and SpaceX founder Elon Musk has ramped up his aggressive campaign to buy the entirety of social media giant, Twitter. Read more
Shares
How to Make Money in Short Selling
What is short selling? There is a common practice for people who actively trade in the stock market, which is to “buy low and sell high”, but what if you can still make money by doing the opposite? Read more
