GameStop (GME) Stock Goes Parabolic Again: Shorts Are Burned Again

The ‘meme stock’ phenomenon in the stock markets has been one of the historic happenings ever and it seems that it might be back again.

GameStop (NYSE:GME) had made remarkable earlier this year due to the actions of retail investors from the Reddit community WallStreetBets and on Tuesday, it managed to record gains of 16.30%. Moreover, the stock is up another over 11% in the pre-market session.

In the process, the stock hit its highest level since March this year. The rallies in the GameStop stock and in other ‘meme’ stocks have come after a massive selloff in cryptocurrencies like Bitcoin last week.

It should be noted that in recent weeks cryptocurrencies had been a favored of speculative investment from many retail investors. Investors on the Reddit community believe that their concerted efforts have again forced short sellers to close their positions and resulted in a strong rally in the stock. It now remains to be seen if the rally in GameStop continues or not.

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GME stock is up over 60% in about 2 weeks.

 

Michael Rowels

Weekend Contributor. Writing for business and finance publishers has become his passion over the last decades after he completed a master's degree in Financial Management. Sharing some opinions and forecasts to thousands of readers is a routine job for him but he never promises to invest in one stock.