{"id":189515,"date":"2021-02-25T16:06:49","date_gmt":"2021-02-25T13:06:49","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/gamestop-stock-explodes-for-second-day-reddit-cheers\/"},"modified":"2021-02-25T16:06:49","modified_gmt":"2021-02-25T13:06:49","slug":"gamestop-stock-explodes-for-second-day-reddit-cheers","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/gamestop-stock-explodes-for-second-day-reddit-cheers\/","title":{"rendered":"#GameStop stock explodes for second day, Reddit cheers"},"content":{"rendered":"

“#Game<\/a>Stop stock explodes for second day, Reddit<\/a> cheers<\/strong>”<\/p>\n

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GameStop\u2019s\u00a0stock price\u00a0exploded again Thursday as Reddit\u2019s army of retail traders launched a second\u00a0salvo in its rebellion against Wall Street.<\/p>\n

Shares in the video-game retailer surged 101 percent to an intraday peak $184.64 after more than doubling in a wild Wednesday session, adding as much as $9.7 billion to its market value in just two days.<\/p>\n

GameStop pared the gain to about 61 percent as of 2:12 p.m. Some other companies that rookie investors pumped up in January also surged \u2014 beleaguered cinema chain AMC Entertainment climbed as much as 21 percent to $11, while headphone maker Koss nearly doubled to $35.05 and was recently trading up 49 percent.<\/p>\n

But GameStop was still the favorite on WallStreetBets forum, where traders celebrated the massive move in a stock they turned into a symbol of a populist uprising against hedge funds and big-time investors.<\/p>\n

\u201cWho\u2019s putting billboards up again???? I love the stock!!!!\u201d\u00a0a Redditor named immya124\u00a0wrote<\/a>\u00a0on the message board Thursday.<\/p>\n

\u201cGME is what separated the men from the boys,\u201d Carl95M\u00a0posted<\/a>, referring to GameStop\u2019s ticker symbol and adding two of WallStreetBets\u2019 favorite emojis: a rocket and a diamond.<\/p>\n

It\u2019s unclear what sparked the meme stock revival after about two weeks of muted trading. One potential catalyst might have been a cryptic Twitter post from GameStop board member and investor Ryan Cohen, the Chewy.com co-founder who\u00a0some fans see as key to improving the company\u2019s fortunes.<\/p>\n

The tweet<\/a>, posted about two hours before the markets closed on Wednesday, featured a photo of a McDonald\u2019s ice cream cone and was captioned with a lone frog emoji.\u00a0<\/p>\n

Traders on Twitter and Reddit speculated wildly about its meaning. Some thought Cohen was hinting that he would fix GameStop by likening the company to McDonald\u2019s notoriously unreliable ice cream machines.\u00a0<\/p>\n

Some claimed it was a sign that he would be named GameStop\u2019s chief executive, pointing to an\u00a0anecdote<\/a>\u00a0about Chewy\u2019s first board meeting including \u201ca trip<\/a> to McDonalds for soft serve.\u201d Others posited that it was a reference to the stock\u2019s moving average convergence divergence, or MACD, a technical indicator of its momentum.<\/p>\n

One Redditor named Its4PM had a simpler theory: \u201cJust look at how the M is drawn\u2026 Let me give you a clue, motherf\u2014er. IT GOES UP AND DOWN,\u201d the user wrote in a\u00a0Thursday morning post<\/a>.<\/p>\n

The rally may have also gotten some fuel from former short-seller Andrew Left\u2019s Citron Research, which\u00a0urged<\/a>\u00a0GameStop to acquire Esports Entertainment Group, a gambling platform for professional video-gaming events. Esports Entertainment\u2019s shares surged as much as 39 percent on the news<\/a>.<\/p>\n

\u201cInstead of selling these people low margin hardware and video games, GME should become the software and more important the BETTING platform for their gamers to compete in and bet on E Sports,\u201d Left \u2014 who said last month that he was\u00a0threatened for betting against GameStop\u00a0\u2014 wrote in a report.<\/p>\n

Thursday\u2019s rally put a fresh squeeze on short sellers, who have added nearly 2 million GameStop shares worth $181 million to their bets against the stock over the past week, according to data from S3 Partners.<\/p>\n

Investors with short positions in the Texas-based company have now racked up nearly $11 billion in\u00a0mark-to-market losses since the start of the year, S3\u2019s data show.<\/p>\n

\u201cGME\u2019s short side was not the primary driver of the sudden and sharp increase in its stock price,\u201d S3 managing director Ihor Dusaniwsky said. \u201cWhile there were some buy-to-covers brought about by large mark-to-market losses they were offset by new short sellers looking for a pull back from this volatile price move.\u201d<\/p>\n

Despite surging for the past two days, GameStop shares were still trading well below the peak of $483 they reached in late January as the Reddit-fueled market frenzy reached a fever pitch.<\/p>\n

The unprecedented rally began as an online campaign against hedge funds that had bet against GameStop and other beaten-down companies and ended up attracting the attention of federal regulators and Congress.<\/p>\n

Keith Gill, the retail trader known as \u201cDeepF\u2014ingValue\u201d on Reddit who\u2019s been credited with starting the GameStop surge,\u00a0doubled down on his investment\u00a0after testifying before the House Financial Services Committee last week.<\/p>\n

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Keith Gill, the retail trader who\u2019s been credited with starting the GameStop surge, has doubled down on his investment.<\/figcaption>
AP<\/span><\/figcaption><\/figure>\n

GameStop\u2019s explosion came after the Texas-based company said chief financial officer James Bell would leave at the end of March. He was reportedly pushed out by board member and investor Ryan Cohen, the Chewy.com co-founder who some GameStop fans see as key to improving the company\u2019s fortunes.<\/p>\n

After Cohen tweeted<\/a> a photo of a McDonald\u2019s ice cream cone with a frog emoji on Wednesday, some online traders took the cryptic post as a sign that he was executing some grand turnaround plan.<\/p>\n

\u201cThe frog is the long-used symbol of transition and change, from tadpole to frog,\u201d one Reddit poster<\/a> speculated.\n <\/div>\n