why is game stop soaring

why is game stop soaring插图

It is being speculated that the stock is soaringbecause of GameStop’s recent announcement which stated that a “strategic planning and capital allocation committee” is being formed which will aim to make GameStop a “technology business”.

Will GameStop’s stock rise 30% after-hours Thursday night?

That news sent the stock soaring more than 30% in after-hours trading Thursday night. It’ll be interesting to see whether the strategy helps GameStop to regain the momentum its stock had in early 2021.

What happened to GameStop’s short position?

As the stock climbed, short sellers found themselves having to buy more stock to cover their borrowing. Within a couple of days, GameStop’s stock had doubled. “It was a huge, massive short position,” says Corey Hoffstein, chief investment officer of quantitative investment and research firm Newfound Research.

Is GameStop a ‘failing’ retailer?

In a YouTube video, Left argued that GameStop is “a failing, mall-based retailer,” and that its value is “not based on any fundamentals, [which] just shows the natural state of the market right now.”

How does short selling work?

In short selling, you borrow a certain number of shares from brokers, then sell them into the stock market at their current value. You have to pay interest based on how much demand there is, according to Hilary Kramer, chief investment officer for Kramer Capital Research.

Who is the reporter for Vox?

In an interview with Marketplace’s Kai Ryssdal, Vox reporter Emily Stewart raised the question of whether this is all that different from a hedge fund guy going on the CNBC business news channel and stating his opinion.

Who is the press secretary of Biden?

During a White House news conference, President Joe Biden’s press secretary, Jen Psaki , said that Treasury Secretary Janet Yellen and others “are monitoring the situation” and that the stock market is not the only measure of a healthy economy.

Can you buy shares when the price goes down?

Once the share price goes down, you can buy them at the lower price and return them to the broker you borrowed them from. You’ve now gained the difference between the amount you sold them for and the lower price you paid when you bought them. Everyone is, theoretically, happy.

Who owns GameStop?

Here’s when things started to shift: In August, Ryan Cohen — founder of the online pet food company Chewy — disclosed that his venture capital firm, RC Ventures, had a 9% stake in GameStop.

NYSE: GME

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Markets fell in the regular session, but the ultimate meme stock has reportedly pulled another rabbit out of its hat

Stocks were generally lower again on Thursday, failing to maintain gains from earlier in the day. By the close, the Dow Jones Industrial Average ( ^DJI 0.00% ) was down almost half a percent, with milder losses for the S&P 500 ( ^GSPC 1.50% ) and Nasdaq Composite ( ^IXIC 0.00% ).

NYSE: GME

That news sent the stock soaring more than 30% in after-hours trading Thursday night. It’ll be interesting to see whether the strategy helps GameStop to regain the momentum its stock had in early 2021.

GameStop plays the crypto card (again)

GameStop is reportedly looking to launch a business segment that will seek to build partnerships with key players in the cryptocurrency industry, according to The Wall Street Journal.

Old news?

Given GameStop’s past hints of moving in this direction, it’s unclear how much of the report is truly news to investors who’ve actually been watching the company closely. Confirmation of hiring a team of developers and publishers is a step forward, but skeptics will wonder if it’s a step that’s worth a $40 per-share bump in the stock price.

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What subreddit helped push the stock to dizzying heights?

The denizens of the WallStreetBets subreddit helped push the flailing stock to dizzying heights—while a short seller alleged an accompanying harassment campaign.

Is Gamestop a meme?

GameStop started as a meme, but they pushed it to a different level. They’re no longer commenting on the story. They’re wanting to become the story and have very effectively done that.”. GameStop’s stock closed out at $65.01, up 51 percent since Thursday’s close.

Is GameStop a physical retailer?

Like other physical retailers, GameStop’s business has suffered in the past year. Few gamers would rather hit the mall than Amazon’s significantly safer Buy Now button. But GameStop was in dire straits even before the pandemic struck. Its thousands of store locations couldn’t compete with the digital marketplaces offered by the game consoles and PC titans Steam and Epic Games. GameStop laid off dozens of regional managers in mid-2019 after a precipitous, years-long decline in its stock price. To remedy the situation, GameStop announced it would pivot to a social-hub model, like a modern LAN cafe. Then the pandemic hit.

Who is Andrew Left?

Then came war. On Tuesday, Citron Research founder Andrew Left, an activist investor and short seller, tweeted that he’d share five reasons why GameStop’s stock would plummet to $20 fast in an upcoming livestream.

Who is Cecilia D’Anastasio?

Cecilia D’Anastasio is a staff writer at WIRED covering the games industry and gaming culture. She was previously a senior reporter at Kotaku, G/O Media’s video game vertical. Send tips to [email protected]