GameStop Frenzy Returns As Stock Jumps Up Ahead Of Potential Short Squeeze
Redditors are backing GameStop to shoot up in value once again after the company acknowledged its investors.
Last January, investments from Redditors saw the value of GameStop unexpectedly soar. In fact, traditional investors who had taken out short stocks in an effort to buy their stock back at a lower price lost millions. It now seems that the game retailer and Reddit investors could upset the market again.
Two tweets from the company that acknowledged the impact of the investment of Reddit users has led to a resurgence in activity on forums. Multiple Reddit groups now believe the stock is about to skyrocket after seeing a steady rise in value this week.
The tweet that seems to have sparked excitement simply read, ‘Been away for the past few months. What did I miss?’ with an image of an astronaut looking at Earth while having a beer. The post saw thousands engage with it before the social media team decided to take it down.
The following day the company tweeted ‘moass’, an acronym for the ‘mother of all short squeezes’. Once again the company removed the post. Safe to say, Reddit investors have got the message.
According to Forbes, NewsWhip has found a sharp surge in discussion about the stock. In fact, the social media tracking company found that the 10 leading posts on Reddit since May 9, in terms of engagement, have been about GameSpot in the subreddit /Superstonk. A new Reddit investment movement could once again leave short-sellers in a difficult situation, and may be a wise investment for users.
In recent weeks, GameStop has erased $216 million of corporate debt, gained a new lease on a 700,000 square-foot distribution warehouse, and undergone an upper management shakeup. On the back of this, it seems that the company may be heading in a positive direction while its stock price remains relatively low.
On May 10, the stock in the company hit its lowest value in nearly a month ($143). This has now started to change, as investors have begun taking advantage of this cheap value before stocks are expected to increase in value. If this does happen, it would once again leave short-sellers out of pocket and show the power the people have in the world of investments.
The return of excitement around GameStop has seen Dogecoin take a backseat on Reddit investment forums after weeks of being the primary focus. With the success of Dogecoin and the previous increase in value of GameStop, it’s clear that the free market is having its name tested by the public.
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