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(NEW YORK) The GameStop saga.
No one could have anticipated that a struggling video game retailer would be at the center of a next-level frenzy in the stock market that captivated the world, brought hedge funds to their knees and upended the conventions about small investors.
Users from the Reddit page r/wallstreetbets earlier this month gobbled up stock from floundering chain GameStop, sending the price soaring and forcing institutional investors who bet against the company to back out performing what’s known as a “short squeeze.”
The phenomenon where short sellers are forced to repurchase stock as prices rise, thereby pushing the price higher isn’t new, but the combination of characters and technology and novel trading platforms forced Wall Street and regulators to pay attention to retail investors as never before.
GameStop gets downgrade amid massive volume and stock-price surge
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GameStop stock has surged to a new record high share price today, reaching $76.76 per share around mid-day from its opening price of $42.59 per share in a near-80% single-day surge.
This was a new record for the company, beating its previous high price set of $63.30 per share set in 2007.
GameStop s stock has been on a dramatic rise over the last week, from nearly $20 per share on January 12 to double that in two days, and continuing to rise since to today s record high.
According to Bloomberg, today s surge briefly made GameStop the most actively-traded US stock, causing trading to be halted multiple times throughout the day due to high volatility, though it has since resumed.
GameStop Soars on New Board Members, Holiday Sales
GameStop shares climbed as investors lauded the chain s new board members and holiday sales.
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GameStop (
GME) - Get Report shares skyrocketed on Wednesday as investors reacted to the videogame retailer s recently named board members and encouraging holiday sales results.
Shares of the Grapevine, Texas, company at last check climbed 68% to $33.45.
Earlier this week, the retailer reached an agreement with RC Ventures to place three of the New York activist investor s nominees Alan Attal, Ryan Cohen and Jim Grube on the board.
A statement from GameStop said the three executives have deep expertise in e-commerce, online marketing, finance and strategic planning.
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