TradeLocker Beta Now LIVE! - Test the Future of Trading

Start your journey
Trade like a Sage
Your email address must be in the format at [email protected]

GameStop Stock Surges to $348, Crashes 40% Moments After

GameStop, the buzzy stock associated with the Reddit trading frenzy went on yet another wild ride – going as high as $348.50 only to fall 40% shortly after.

SageFX - Mar, 11, 21

*Sage FX would like to state that traders should research extensively before following any information given hereby. Any assumptions made in this article are provided solely for entertainment purposes and not for traders to guide or alter their positions. Please read our Terms & Conditions and Risk Disclosure for more information.

Principal Points

  • GameStop goes on another wild ride
  • Bitcoin climbs towards the all-time high above $58,000

GameStop, the buzzy stock associated with the Reddit trading frenzy, echoed January’s wild swings yesterday. Shares in the company went as high as $348.50 only to fall 40% in 20 minutes, following the rise. The single-day boom and bust cycle came after the stock has been catching attention for the past couple of weeks. This week alone, GameStop marks a 72% rise to the current market price and over 150% to the top from yesterday.

This week’s rally broke above the highest-ever closing price on Jan 27, when the video-game retailer ended the session at $347.50. The meme-stock roller coaster has produced a return of over 1,400% so far this year. On Jan 4, GameStop was trading at $17.25 and by the end of the month, it had created chaos in the stock market and even caught the eye of regulators.

Yesterday, GameStop ended the session at $265 with a gain of 7.3%, after reaching as low as $172 and as much as $348.50. Wednesday marks a sixth straight day of gains for GameStop shares, the longest winning streak since Sep 3, 2020. Later on Wednesday, in a matter of minutes, the stock plunged more than $150 from its intraday high as trading was halted across some brokerages. After trading was allowed, shares started to climb again and closed the session at $265, up to $18 on the day.

US Equity Positive Momentum Continues

GameStop stock is showing a modest loss during premarket trading on Thursday, down about $10, or roughly 4%.

Elsewhere, bitcoin keeps going towards the all-time high reached on Feb 21. Earlier today, the price climbed to a high above $57,000, just $1000 below the historical top. Bitcoin’s quick run this month has seen the price increase by over 25%. On the day, however, bitcoin is trading in negative territory, down about 5% from its intraday high, risking to end a four-day winning streak.

Ethereum, bitcoin’s closest coin by market cap, also remains subdued today. The second-largest cryptocurrency peaked near $1,900 on Tuesday and since then it has been on the losing side, down about 8%. Ethereum reached an all-time high on Feb 20 as price pierced the $2,000 level and made an intraday high of around $2,030. The whole cryptocurrency market now boasts a valuation of nearly $1.7tn, of which $1tn goes to bitcoin and $200bn are allocated to Ethereum. Bitcoin holds a 61.1% share of the whole crypto space.

In the US markets, equity futures today point to a higher open, following a record-day for the blue-chip index, Dow Jones Industrial Average. On Wednesday, the 30-stock index set a new all-time high as it broke above 32,000 points for the first time in history. Futures contracts tied to the Dow Jones indicate a higher open by around 0.30%, while S&P futures and Nasdaq futures point higher by about 0.60% and 1.20%, respectively.