Gamestop (GME Stock) Price and Forecast: Soars 273% as “diamond hands” trigger meme stock comeback
- NYSE: GME is trading at around $168 in Thursday's premarket trade, up 273% from Wednesday's early trading price.
- The departure of the CFO served as the trigger to the fresh buying frenzy.
- Retail traders that have held onto shares seem to be behind the surge.
The bell has rung and GameStop (NYSE: GME) is off to the races – with the departure of Jim Bell, the firm's CFO serving as the trigger. Shares surged by 103.94% on Wednesday, from $44.97 to $91.71 and the upswing continued at full force in after-hours and pre-market trading.
GME shares are quoted at no less than $168 at the time of writing – a surge of 273% or nearly quadrupling.
GME stock news
The financial boss of the veteran video gaming company disagreed with other managers on how to accelerate growth, reportedly on the strategies needed to move into the online world. However, while Bell's exit may have been the trigger, it is essential to remember that GME is the poster child of "meme stocks" – those touted by Reddit's WallStreetBets forum.
Those with "diamond hands" – traders unwilling to let go of shares they bought even in times of trouble – were joined by other investors in pushing shares higher. Some are dubbing the move as "Short-squeeze 2.0."
Can the upsurge in NYSE: GME continue? Some may be pulling out spreadsheets to asses GameStop's potential online growth amid prospects of a receding pandemic. The FDA's nod to Johnson and Johnson's vaccine adds to the bullish outlook for the economy – but also implies fewer hours spent playing video games.
However, in the short term, fundamental analysis may be somewhat less useful than following the likes of Roaring Kitty and other influencers on Reddit. How will hedge funds respond? Wall Street's vultures were hard-hit in the previous round – at least until Robinhood and others imposed buying limitations.
One thing is certain – the action around GameStop (GME) and other shares such as AMC, Nokia, and BlackBerry continues. See all equity news
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Author
Yohay Elam
FXStreet
Yohay is in Forex since 2008 when he founded Forex Crunch, a blog crafted in his free time that turned into a fully-fledged currency website later sold to Finixio.
