GameStop stock jumped 50% in after-hours: explained here
GameStop stock jumped 50% in after-hours: explained here GameStop, the video game retailer, has been making headlines in the stock market recently. The company's stock price has been on a rollercoaster ride, with huge fluctuations in value over the past few weeks. On Wednesday, February 24th, GameStop's stock price jumped 50% in after-hours trading. In this article, we'll explain what caused this sudden surge in value and what it means for investors. To understand why GameStop's stock price jumped, we need to look back at the company's recent history. In January 2021, a group of amateur investors on Reddit's WallStreetBets forum started buying up GameStop stock. They believed that the company was undervalued and that its stock price would rise if enough people bought shares. This led to a phenomenon known as a short squeeze, where investors who had bet against GameStop's stock were forced to buy shares to cover their losses. This buying frenzy caused GameStop's stock price to skyrocket, reaching a high of $347.51 on January 27th. However, the stock price soon plummeted, as the Reddit investors started selling their shares and the short sellers covered their positions. By February 2nd, GameStop's stock price had fallen to $90.00. Since then, the stock price has been volatile, with huge fluctuations in value. So, what caused the sudden surge in GameStop's stock price on February 24th? The answer is not entirely clear, but there are a few possible explanations. One is that the company announced that its Chief Financial Officer, Jim Bell, would be stepping down. This news could have been seen as a positive development by investors, who may have believed that a change in leadership could help turn the company around. Another possible explanation is that the Reddit investors are back in the game. On February 23rd, a post on the WallStreetBets forum urged investors to buy GameStop stock again, claiming that the stock price was being manipulated by short sellers. This post could have sparked renewed interest in the stock, leading to the surge in value. Whatever the reason for the jump in GameStop's stock price, it's important to remember that investing in the stock market is always risky. The stock price could just as easily fall as it could rise, and investors should be prepared for the possibility of losing money. That being said, GameStop's recent history has shown that anything is possible in the stock market, and investors who are willing to take risks could potentially reap big rewards.