Defiant Reddit traders help Gamestop claw back some of its losses
The Gamestop bubble has not burst just yet as shares in the retailer jumped again after a gruelling day of trading on Tuesday.
Shares in Gamestop dropped 60 per cent yesterday triggering multiple trading halts in the meme stock favoured by Reddit traders.
The so-called meme stock saw its share price surge 300 per cent last week after traders on r/wallstreetbets tried to force a short squeeze rally. The message board is full of posts encouraging users to hold and keep buying Gamestop stock.
The bricks-and-mortar retailer is now trading up 17.42 per cent at $106.32.
Shares in AMC Entertainment, another heavily shorted stock, jumped more than 23 per cent to trade at $9.62 after falling 41 per cent on Tuesday.
Silver had been the focus of traders earlier in the week with prices reaching above $30 per ounce, its highest level in eight years, before falling sharply yesterday. The precious metal is now trading at $26.80.
“As we predicted, moving silver is much more complicated than manipulating a small crypto or a single stock and the quick rise was mostly absorbed by the markets,” Carlo Alberto De Casa, chief analyst at Activtrades said.
On Wall Street opened higher before tapering off. The Dow Jones is flat at 30,740 points while the benchmark S&P 500 has climbed 0.44 per cent higher.
“The morning rally fizzled at the open as some investors quickly headed for the sidelines and cashed out on their FAANG stocks now that tech is done with all their major earnings results,” Edward Moya, senior market analyst at Oanda said. “Adding to the market nervousness was the nice pop that the Reddit-fueled retail army gave to GameStop, AMC, Koss, and silver bets.”