Reddit Drives up GameStop Stock Prices

GameStop’s stock prices have been soaring high, thanks to Reddit. Redditors on the subreddit r/WallStreetBets have caused a massive increase in stock prices.

GameStop has not been doing good. As a retailer for games, after the rise of Steam, the company is facing a similar situation to Blockbuster. While the launch of several highly anticipated games and consoles helped, the company still struggled due to the COVID-19 pandemic. Last year, the company’s stocks fluctuated around $20, and by the end of the year, the prices dipped even below that.

GameStop’s stock prices have shot up so suddenly that it has stunned many investors who would have expected the company to forfeit.

GameStop’s stock prices have skyrocketed to about $120 per share. All credit goes to the r/WallStreeBets subreddit, which has played a central role in driving up the prices.

According to CNBC and Bloomberg, a similar notable hike took place last week which drove the prices from about $40 to $73 at its peak. The stock prices have soared again today.

The prices were about $60 per share when the market closed on Friday last week and have shot up to about $150 per share, which is an increase of more than 125 percent. It means that anyone who bought ten shares at $20 at the year’s start and sold it around the $150 peak has made around $1500.

Many Redditors believe that the stock prices would climb further to about $1000 per share. One Redditor claimed to have turned $53,566 into more than $11 million. Currently, the stock prices are falling below $100. However, there is faith that the prices would soar, mainly because of a similar thing last week. 

The entire stunt is based on shorting GameStop’s stocks, so if someone holds the stocks for too long, they would be more likely to lose a large sum of money. The stocks have been extremely volatile and have fluctuated significantly just after the market opened.

Many believe that the stocks would fall back to around $20 when all this is over, but it is unclear when that will happen. Seeing as how volatile the stocks are, it would not take much longer. Right now, the entire r/WallStreetBets subreddit is watching with close interest.