Meme-stock Gamestop rockets up 100 per cent in second Reddit rally

GameStop shares climbed rapidly and were halted twice for volatility ahead of the closing bell Wednesday.
The gaming retailer’s stock was priced at $US 91.71 at market close, up nearly 104 per cent from the previous day.
Shares were halted once around 3:40pm ET after climbing nearly 74 per cent, and again just over 10 minutes later after gaining 104 per cent.
READ MORE: Trading app CEO defends ‘Gamestop’ drama
The gaming retailer’s stock was priced at $US 91.71 at market close, up nearly 104 per cent from the previous day. (AP)
Having déjà vu yet? The surge comes about a month after a wild GameStop trading frenzy caused its stock to jump around 1,600 per cent in a matter of days, though it quickly fell from highs around $US 350.
The late January surge was fuelled by individual retail investors, many from the Reddit page WallStreetBets, some of whom believed the GameStop was undervalued and others who wanted to squeeze hedge funds that had shorted the stock.
READ MORE: Redditors are going ‘ballistic’ over GameStop’s sinking share price
The front page of r/WallStreetBets, the sub-forum that is driving the value in GameStop. (Reddit)
The jump in GameStop also comes a day after the company announced its chief financial officer would resign next month to help “accelerate GameStop’s transformation,” which could fuel investors who believe in the long-term value of the retailer and its ability to shift from relying on physical stores to an e-commerce sales model.
AMC, another “meme stock” involved in the trading frenzy last month, also jumped around 18 per cent on Wednesday.
Explained: How an online forum called Reddit boosted a struggling company’s stock by 1700 per cent

Source: 9NEWS

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