Gamestop share price wild moment from a $17 to almost touching $500 in just few weeks. How a tug of war is been started between Hedge funds and a group of retail investor online.
A struggling Video game software and hardware company has seen a life time moment in its stock price. It all started after a speculation that certain group of institutions /hedge fund has bet that it value might go down.
So you might think if certain institutions expect it to go down then why is the gamestop share price rally upside?? Its because a group of retail traders who are active in a platform reddit. So these retail investors decided to buy and hold the stocks. Now that there is demand created in stock the price went up drastically.
Adding energy to the above incident a tweet from Elon Musk “Gamestonk!!” with a link to reddit’s stock discussion group. added more hype to it. Surged almost 40% to 50%. There has been many instances where such discussion goes on. During this pandemic situations these groups has gained more than imagined influence.
Hedge funds who though will benefit from shorting the stock had to face huge loss which comes around Rs.10,000 crores./ $55 Million Dollors. Seeing such a rally for no specific reason. The situation has crushed those who were on the shirt side. Forced to Book looses.
Trading activity was seen halted for many times on Monday and tuesday. After premarket gains and touchin almost $500 it has vanished all the gains and showing negative by falling almost 12% to 14%
When will gamestop share price rally end ??
Nobody knows how it will end. Melvin Capital Spokesperson said it required $2.75 Billion because of the short squeeze and its out of the short position. Andrew Left from Citron research has informed that it had covered major part of short with loss of 100 Percent. Source
Internet is still being underrated by many and this what its capable of. Growing a community and gaining follower’s to influence them is the next big thing.
Its just for educational purpose do your own research before making any decision. Till then See you in another article. If you wanna learn more about Digital Gold Click here.