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