GameStop Stock Soars in Unprecedented Trading Frenzy
Market Summary
Shares of GameStop Corporation (NYSE: GME) skyrocketed by over 145% on Monday afternoon, reaching a record high of $347.51. The surge in buying activity has been attributed to a Reddit-fueled short squeeze, in which retail investors banded together to drive up prices and force short sellers to cover their positions at a loss.
Key Details
The stock's incredible rally has sent shockwaves through the financial markets, with many analysts struggling to explain the magnitude of the move. GameStop is a brick-and-mortar video game retailer that has been struggling financially in recent years due to the rise of digital gaming. However, the company has become a rallying point for retail investors who have used social media to coordinate their buying and betting against Wall Street hedge funds that had been shorting the stock.
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