Breaking News
Ad-Free Version. Upgrade your experience. Save up to 40% More details

GameStop ends up 7.3% after wild swings, other 'meme stocks' soar

Stock MarketsMar 10, 2021 06:30PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
2/2 © Reuters. FILE PHOTO: A GameStop store is pictured in New York 2/2

By Saqib Iqbal Ahmed and Sinéad Carew

NEW YORK (Reuters) - GameStop (NYSE:GME) ended 7.3% higher on Wednesday after wild gyrations in the resurgent rally that has vaulted shares of the video game retailer and other so-called meme stocks closer to the peaks of late January.

Shares of GameStop closed at $265 following turbulent trading that saw them rise by as much as 41% to a peak of $348.50, a move some analysts said was accelerated by bearish investors unwinding bets against the stock.

The rally put the company’s market capitalization at $18.48 billion, making it the biggest listing on the S&P 600 index of small-cap stocks. At their session high, GameStop shares were up 800% from last month's low but still 28% below their late January peak.

Traders exchanged almost $20 billion worth of GameStop shares, making it the Wall Street session's second most-traded company after Tesla (NASDAQ:TSLA) and ahead of Apple (NASDAQ:AAPL).

Other stocks popular with retail investors in forums such as Reddit’s WallStreetBets also enjoyed outsized gains. Headphone maker Koss Corp soared more than 100% at one point and cinema operator AMC Entertainment (NYSE:AMC) jumped nearly 19% before erasing gains.

The moves drew cheers on WallStreetBets and other online forums and eyerolls from other market participants.

"You just have wild speculation .. They're guessing," said Phil Blancato, CEO of Ladenburg Thalmann Asset Management in New York. "I wouldn't touch it with a 10-foot pole right now."

Investors short GameStop shares have incurred over $1.3 billion in losses over the last couple of days, forcing some to abandon their positions and buy back the stock in a phenomenon known as a short squeeze, said Ihor Dusaniwsky, managing director of predictive analytics at S3 Partners.

Shorts have covered some 3 million shares over the last seven days, worth $742 million, the firm’s data showed.

"As GameStop keeps going up, we are going to continue to see short-covering as more shorts reach their maximum pain threshold and are forced out of their trades," Dusaniwsky said.

GameStop retains a legion of devout followers after a social media frenzy in January triggered a massive rally in which its shares surged more than 1,600%.

That spike triggered a short squeeze that shook hedge funds such as Melvin Capital.

But fuel for further short squeezes may be running out: About 20.5% of GameStop's share float is sold short, the lowest in at least three years, according to S3 data.

Market strategists have also said tens of billions of dollars from stimulus checks sent to Americans through U.S. President Joe Biden's coronavirus relief package could find their way into the stock market, including into the "meme stocks" promoted by retail traders online.

GameStop bulls also hope for a profit boost from the transition to e-commerce for the video game retailer, led by shareholder and Chewy (NYSE:CHWY).com co-founder Ryan Cohen, who is on the company's board. The company has said it would report earnings on March 23.

Denizens of WallStreetBets exhorted one another to hold on for more gains, while others lamented selling too early.

"Makes (me) physically sick I sold all 39 shares of GME at $120 at a loss cause I thought it wasn’t happening again," Reddit user TheKingTodo wrote.

Separately, on Wednesday, shares of U.S. gaming company Roblox Corp RBLX.N closed up 54.4% in its New York Stock Exchange trading debut on Wednesday, valuing the company at $45.2 billion.

GameStop ends up 7.3% after wild swings, other 'meme stocks' soar

Related Articles

Can DoorDash Stock Outpace its Rivals?
Can DoorDash Stock Outpace its Rivals? By TipRanks - Sep 22, 2021

DoorDash (DASH) stock held its own relatively well on Monday's brutal session of trade that dragged many unprofitable, high-multiple tech stocks much lower. The stock fell just...

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at’s discretion.

Write your thoughts here
Are you sure you want to delete this chart?
Post also to:
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Are you sure you want to delete this chart?
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
Sign up with Email