- The stock price of GameStop Corp. (NYSE: GME) has increased over 45% pre-market as of 6:26 AM ET today. This is why it happened.
The stock price of GameStop Corp. (NYSE: GME) has increased over 45% pre-market as of 6:26 AM ET today. This is a continuation from a surge in stock price on Friday January 22.
One of the major reasons for the stock price increase has to do with a clash between speculative buyers organized on Reddit and short-selling firm Citron Research. Essentially, this is a rare convergence of a short squeeze — which is also being combined with fundamental news.
Earlier this month, GameStop made a deal with activist investment firm RC Ventures to bring in 3 veterans from Chewy to its board of directors. The new board members include Ryan Cohen (founder and former CEO of Chewy and RC Ventures manager), Alan Attal (former CMO of Chewy), and Jim Grube (former CFO of Chewy).
Citron had triggered an army of Reddit users who were retaliating to a tweet from the short seller that said: “buyers at these levels are the suckers at this poker game.”
Disclaimer: This content is intended for informational purposes. Before making any investment, you should do your own analysis.