The elongated saga of the GameStop stock situation seems to have earned a second wind recently, as the market value for the company is starting to rise again. Whether this is lasting growth or another sudden spike is still to be determined, though the details behind GameStop’s stock situation likely point to this being little more than the flash in the pan that it was last time.
Over a month after the original rise in GameStop’s stock prices, caused by a concerted effort from the Wallstreetbets subreddit to crowdsource against larger hedge funding firms, the stock values are almost back to their original peak. However, this rise is likely to change fast as the market opens again, so trying to jump on the train now might be a bit of a risk, especially for private investors.
At the time of this writing, the GameStop stock price has risen to $246.90 per unit, coming just short of the previous peak at $347.51 at the start of the whole situation. The result of this climb is an overall market value of over $17.2 billion, which could be great news for the company if this recent growth remains steady. It should be noted that GameStop’s second wind began its climb towards the end of February and has maintained a slightly higher standing in the market over the past few weeks.
All of that being said, most analysts consider this current standing to be overvalued again, pointing especially at the rapid fall after January’s original rise as proof of this inconsistency. It also isn’t yet determined exactly what has caused this current rise in stock prices, whether its bots artificially ramping up GameStop’s value or another effort of crowdsourcing market manipulation through sites like Reddit. Regardless of the cause, this growth will likely show for a few more days before falling off again, though it could follow suit with the first spike and end GameStop off with a slightly higher value than before the sudden change.
With the initial news of GameStop’s market value rocketing back in January, many onlookers started looking at the stock market as this volatile thing that can be gamed by a subreddit. However, it should be noted that this is not the normal behavior of the market, and it can be easy for investors flocking to catch the next GameStop to lose a lot of money. So, while this whole saga has been eye-opening for many, and entertaining for others, anyone looking to jump into short-term investments like this should be cautious about jumping in without proper research.
Source: Yahoo! Finance
![\"IT電腦補習](\"http://itteacheritfreelance.hk/test/wordpress/wp-content/uploads/2016/05/logo2-2.png\"){kind=logo}
www.itsec.hk
www.itsec.vip
www.itseceu.uk
Leave a Reply