That pushes the stock up even more . That’s how we suddenly see Game. Stop’s value jump.
, game Stop’s shares are now up more than 1,000% since the beginning of the year. Analysts say the stock’s staggering ascent is due largely to a short squeeze , driven by a slew of individual investors who are coordinating their buying efforts on sites such as Reddit and Twitter ( NYSE: TWTR)., game Stop’s stock price is up more than tenfold in 2021.
Redditors break the stock market The past few days have been turbulent for Game. Stop’s stock price . The video game retailer, which has been suffering financially in recent years, has seen its shares rise dramatically in value as industry traders force a stock price bubble.
And it’s still climbing after hours. Earlier this year, Game. Stop stock had an epic short squeeze, orchestrated by a group on Reddit called Wallstreetbets. This group noticed that short interest for Game. Stop stock was over 100%.
What’s happening: Short sellers have piled into Game. Stop as a result of its meteoric stock price rise, not the other way around, Ihor Dusaniwsky, managing director of predictive analytics at S3 Partners, told Axios. Support safe, smart, sane journalism.
Is GameStop losing money?
New York (CNN Business) Game. Stop is expected to lose money this year and next year. Sales growth is sluggish as fewer gamers need to go to stores — or even shop online — when they can download new titles directly from their consoles, PCs, phones or tablets. So why are shares of the video game retailer up more than 275% so far in 2021?
The video game stock is simply riding the rising tide higher , and it wouldn’t be surprising to see it resume falling again tomorrow.
Is GameStop stock having a short squeeze?
Earlier this year, Game. Stop stock had an epic short squeeze , orchestrated by a group on Reddit called Wallstreetbets. This group noticed that short interest for Game. Stop stock was over 100%.
Those announcements appear to have ignited a massive short squeeze. Yet as its price has soared in recent days, those short-sellers have suffered brutal losses.
You may be thinking “What is the GameStop short squeeze?”
This sent the stock price up rapidly and created what is called a short squeeze. Institutions that were “short” the stock found themselves squeezed because they needed to return the shares they had borrowed and sold. So, the institutions had to purchase Game. Stop in the market, at market prices.