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GameStop, Clover Health rise in early U.S. pre-market trading

Published 02/05/2021, 04:11 AM
Updated 02/05/2021, 05:55 AM
© Reuters. FILE PHOTO: The GameStop store sign is seen at its shop in Westminster

(Reuters) - Shares of videogame retailer GameStop Corp (NYSE:GME) and insurance company Clover Health rose 3.5% and 4.1%, respectively, in early U.S. pre-market trading on Friday.

Clover Health had slumped 12% on Thursday after short-selling specialist Hindenburg Research published a critical report of the Chamath Palihapitiya-backed company.

GameStop's stock has now slumped to about $53 after scaling as high as $483 last week in a rally fueled by amateur traders on social media forums such as Reddit's WallStreetBets. It is still up about 177% from levels at the start of the rally.

Latest comments

Believe parties over, another wealthy robber Barron came to thee rescue to save hedgies billions and now that the stock is back down everything is hunky dory for the wealthy anyway.
Some Wall Street hedge funds suffered big losses last week after amateur trades on Reddit collectively bought shares in GameStop. The American gaming and electronics retailer had been declining, so hedge funds bet against the company using a method called “shorting”. This involves borrowing shares in a company, selling them, and promising to buy them back at a later date. If a company’s value declines, the hedge fund would make a profit – but if the company’s value rises, they make a loss. Reddit investors bought shares in GameStop to drive its value upwards – meaning when hedge funds were forced to buy back their shares, they suffered huge losses. https://worldabcnews.com/gamestop-investor-explains-how-everyone-can-make-more-money-after-wall-street-crisis-city-business-finance/
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