American gaming merchandise company saw an unprecedented rise in its stocks that caught everyone s attention. Comedian Avalon Penrose explains the stocks surge in GameStop. | Photo Credit: Twitter
The business world is always characterized by constant ebbs and flows. However, when certain unprecedented scenarios take place, it shakes up stock markets around the globe.
An American gaming merchandise company called GameStop saw a rapid surge in its stocks that caught everybody s attention, especially of the day traders. The incessant rise in trading resulted in the company s value bumped up by more than $10 billion by Wednesday. From being just $2 billion back in December 2020, it has now worth $24 billion.
GameStop soars 23% as short-squeeze rally charges into 2nd day
Ben WinckJan 14, 2021, 20:59 IST
Mairo Cinquetti/NurPhoto/Getty Images
GameStop soared as much as 22.8% on Thursday as more short-sellers closed positions and ran for the exit.
The company s Monday announcement that it would add activist members to its board kicked off a rally that s left shareholders cheering and squeezed shorts out of their bearish bets.
The scale to which short-sellers were targeting
GameStop likely exacerbated the squeeze. Short interest in GameStop shares reached 135% on January 5, according to S3 Partners data.
The leap comes after the video-game
retailerscored a 57.4% gain on Wednesday that pushed shares to their highest level since August 2016.
GameStop rips 93% higher as board-overhaul rally enters 3rd day
Ben WinckJan 13, 2021, 23:51 IST
People line up outside GameStop in Herald Square as the city continues the re-opening efforts following restrictions imposed to slow the spread of coronavirus on December 12, 2020 in New York City.Noam Galai/Getty Images
GameStop exploded as much as 93% higher on Wednesday as investors continued to make bullish bets on the retailer s new board of directors.
The company agreed with activist investor RC Ventures on Monday to add three new members to its board, including Chewy founder
Ryan Cohen.
The move pushed shares 12.7% higher on Monday and drove a modest gain the following session.