If you purchased Gamestop last year, you could give a pat on your back because you stand to make plenty of money, all due to possible market manipulation.
A new article on Shacknews said that Gamestop (GME) was able to hit an all-time high stock valuation a few hours ago. It happened after they were moving around in the stock market for $2 per share.
This is all possible due to a surge of the share price due to a short squeeze of the r/WallStreetBets subreddit members. GME’s cash flow depended on the used game’s profits, faced a challenging market life because of the digital distribution and online sales.
Gamestop was having a tough year due to the pandemic, and its retail operations globally were doing poorly. They also faced a harrowing time before the pandemic struck. The company has to close down thousands of stores as they could not compete with the game consoles and PC software like Steam and Epic Games.
A news article on wired said that Gamestop also had to layoff regional managers in 2019 after a year of struggle and hardship because of a decline in the stock price. Few markets also said that the GME might not last any longer in the market.
With a sudden twist of events, analysts have called it a smooth move. Jim Cramer, market guru, called the squeeze of a lifetime. Traders on subreddit WallStreetBets enabled the video game retailer stock price to rise from $20 on January 11, 2021, to $73, when market analysts deemed it worthless.
They did that because a large number of short positions can be put under pressure. This has led to what is known in the market as a short squeeze. It has resulted in a rapid boost of the stock price because of traditional factors that usually positively affect the value, like robust earnings reports.
The video game retailer was trading around $60 a few hours earlier in the stock market. This makes it one of the volatile stocks in the market; the New York Stock Exchange had to temporarily halt trading after 12:00 PM ET.
The WallStreetBets subreddit came with a popular post declaring, “GME!!!”