GameStop action soars after the company’s official Twitter appeared to acknowledge its recent surge – and Wall Street Bets are back
- GameStop shares rebounded on Monday as Redditors renewed their bullish outlook on the action.
- The company tweeted a photo of an astronaut on the moon last week, appearing to acknowledge the recent surge in the stock.
- GameStop shares fell to their one-month low on May 10 and have since recouped some losses.
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GameStop shares jumped as much as 9% on Monday as Redditors of the Wall Street Bets feed renewed their interest in the stock after the company appeared to acknowledge its rally on Twitter last week.
As of May 9, three of Reddit’s top 10 posts were discussions on GameStop from the “Superstonk” subreddit, Forbes reported, citing data from the NewsWhip social media tracker. NewsWhip did not immediately respond to Insider’s request for comment.
GameStop shares hit their lowest in one month on May 11, dropping to $ 136.50, a far cry from their all-time high earlier this year from around $ 350.
The next day, GameStop Official Twitter Account tweeted a photo of an astronaut, dressed in a spacesuit bearing the GameStop logo, sitting on the moon. He would say, “I’ve been gone a few months. What have I missed?” The company then deleted the tweet.
Then the next day he tweeted the Wall Street Bets acronym, “moass,” which means “the mother of all short pushes” and also deleted it later.
For months, day traders on the Wall Street Bets Reddit thread have been pushing the price of GameStop shares, which started the year in their mid teens. The shares are now multiplied by eight since the beginning of the year.
Redditers have turned GameStop into a “meme stock”, and popularized phrases like “to the moon,” a reference to exponentially increasing stocks. Day traders buying stocks started out as a way to squeeze short sellers who bet heavily against GameStop.
Despite the stock’s trading position, the target prices of analysts who cover GameStop are still much lower, ranging from $ 3.50 to $ 33.
While Redditors maintained their bullish outlook on the action, GameStop bolstered its balance sheet, wiping out $ 216 million in debt and embracing an activist investor. Ryan cohen, which hopes to make the business “the Amazon of gaming”. After Cohen joined the board, the company’s top executive, George Sherman, announced he would. resign from his role this summer.