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.
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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.