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GameStop on a winning streakINTL

GameStop on a winning streak

So what the heck is going on with GameStop (GME), you may ask? Don’t worry, we’ve got you covered.

The company’s stock more than doubled in price on Monday, adding to its already pretty impressive surge in the previous week. The stock jumped to as high as $136.63 per share compared to its $65.01 closing price on Friday – which was actually the video game retailer’s most active day since its IPO back in 2002.

GameStop first registered gains on January 11 after the company decided to bring in new directors to head their strategy towards e-commerce and online marketing.

But the whole thing has essentially become a battle between investing forces – day traders versus short sellers (people who bet that a certain stock they sell is bound to drop in price) – with short-selling firm Citron Research and Reddit speculative buyers taking the front stage.

Grab your popcorn and get ready to follow this GoT-style war, because someone is bound to give in eventually.

why it matters
The buyers who organize on Reddit’s WallStreetBets have done this before with companies like Kodak and Hertz, and they are fully aiming their energy at GameStop this time, doubling down on the purchases and leaving those holding a short position with more and more losses. The real question is – will they be able to keep the momentum going?