GameStop surges to the top of Wall Street Bets discussions as the stock sees its biggest jump in 10 weeks
By: Business Insider
August 24, 2021 at 15:55 PM EDT
John Smith/VIEWpressSummary List Placement
Shares of Gamestop surged to their highest level in 10 weeks, with chatter surrounding the video game retailer surging on social media site Reddit on Tuesday.
The stock surged as much as 37% to an intraday high of $225. It was trading 23% higher at $203 as of 3:23 p.m. ET.
The Grapevine, Texas-based company was the top-hyped stock on Reddit investing thread Wall Street Bets, mentioned 830 times in the last 24 hours, according to data from Quantitative Quiver, an analytics firm.
One post in particular, at over 4,000 words long, was upvoted more than 5,000 times.
The user, who goes by Roman, is betting the stock price goes into the thousands in a "couple of months."
The user compared Gamestop with fellow meme-stock AMC Entertainment, saying: "GME and AMC are like brothers in arms, with 'similar' fundamentals, and through the major part of 2021 those two have been moving in tandem, strongly following linear correlation principle."
"Why if two stocks have very similar fundamental and technical backgrounds, one is allowed to moon a little bit, while the other one is being knocked out each time right before the lift off should occur? The answer [is] fairly obvious, and it's because some big financial boys want things to go this way," he said.
The GameStop frenzy dominated market headlines for weeks at the beginning of this year, as the stock skyrocketed from around $40 to intraday highs of over $450. AMC rallied as well, albeit to a fraction of the price GameStop achieved at its peak in January.