All Eyes Are On GameStop
GameStop's historical run of good fortune is continuing, and investors are poised to reap the benefits. On Monday, GameStop's stock price rocketed to a high of $159 a share. As of yesterday, this streak continued, with stocks reaching highs of over $200 a share, according to Kotaku. On the evening of Jan. 26, Bloomberg's Eric Balchunas tweeted, "THEY DID IT: $GME was the most traded equity on the planet today[.]"
Yes, GameStop stocks managed to outpace even massive tech companies like Tesla. This is likely why even Tesla CEO Elon Musk got in on the fun, tweeting a link to the subreddit that kicked this whole thing off.
This all started when casual investors and day traders on the r/WallStreetBets subreddit made a concerted effort to drive up the company's stock price. While many investors have seen this short squeeze as an opportunity to make a substantial profit — one user has reportedly seen his initial $50 thousand investment shoot up to $22 million — others are seeing this as a way to start a bit of a revolution in the world of investment trading. One Redditor wrote, "This is a big moment. A tug of war between tradition and the future."
These huge jumps in stock value have come hot on the heels of a series of exciting changes for GameStop. The company joined forces with RC Ventures, gaming three new board members. One of these members is Ryan Cohen, who previously worked wonders with his pet supply company Chewy. Industry analysts have speculated that Cohen's influence alone could turn GameStop around as a company, so it's no wonder that the company's stock began soaring shortly after the announcement.
However, it is unlikely that this trend will continue at such an accelerated rate. With longtime traders warning publications like The Wall Street Journal of the dangers of buying stocks during a surge, day traders and fans of GameStop are probably enjoying this moment while they can.
In fact, there are many in the investment game who have warned other stockholders about an impending collapse. Michael Burry, head of Scion Asset Management, said simply, "If I put $GME on your radar, and you did well, I'm genuinely happy for you. However, what is going on now – there should be legal and regulatory repercussions. This is unnatural, insane, and dangerous." Burry has since deleted that tweet, but it should give you an idea of how nervous even longtime investors have become.
In the meantime, all eyes are on GameStop. If you've purchased stock in the company, now might be a good time to take a look at what its worth.