Reddit traders drove shares up more than 750% in just a week
After discovering that several hedge funds had bet on the video game retailer losing value, thousands of day traders banded together on the Reddit forum WallStreetBets boost GameStop shares more than 750% in just a week.
Over the course of January, GameStop’s stock price ballooned to a high of $483 from a low of $17. The short squeeze in GameStop started to fade this week. GameStop was not in the 10 most-bought names by retail investors last month, according to JPMorgan. GameStop shares came under renewed pressure on Thursday, falling more than 40%.
“The saga isn’t over for GameStop and the other stocks making headlines in recent weeks, but it is likely winding down,” said Craig Birk, chief investment officer at Personal Capital.“Bigger picture, the army of retail day traders will simply move on to the next thing.”
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