GameStop spikes one more time. On Wednesday, the price of $GME stocks surged by 104%.
The gaming company’s shares rose to fame after the Reddit group @WallStreetBets encouraged its members to buy the $GME stocks. This move led to an increase in stock prices by 1,600% within a few days.
Reddit went down temporarily on Wednesday. The reason for the outage is unknown. However, the social platform has announced that the issue is fixed, and the system is recovering. During the shutdown period, GameStop’s stocks doubled in price. Moreover, the trading volume is close to three times higher than the 5-day average for the stock.
A Search For Signs:
The price rise came one day after the chief financial officer of the company announced his plan to resign next month. The reason for this decision, cited by the company, was to help ‘accelerate GameStop’s transformation‘.
Another event leading up to the soaring of $GME is the tweet by Bryan Cohen, the founder of chewy.com and a shareholder of Gamestop. He tweeted an image of McDonald’s Ice Cream with a frog emoji as a caption.
— Ryan Cohen (@ryancohen) February 24, 2021
The bullish investors of GameStop interpreted it on a whole another level. The subsequent discussion described the image as Cohen’s plan to fix the GameStop business just like McDonald fixed its Ice Cream machine.
Analysts believe that people are just searching for signals at this stage. Every small gesture or sentiment brings quick episodes of pump and dump of stocks.
GameStop spikes in price as the trading frenzy begins. It is a deja vu of what happened last month when the price jumped to $350.
The trading mania of $GME was spurred through the internet in January. Afterwards, it became the epitome of war between individual investors and wall street short sellers.
At the time of this writing, $GME is trading at 91.71 USD.