You thought it was over, you thought this was a bubble, but guess what? It's soaring again. GameStop's stock price has started skyrocketing yet again, managing to have a gain of more than 100 percent, catapulting its price from its $44 per share to a whopping $91 per share.
Is this running on hype? Well, it is but then again, isn't that the Wall Street game?
So, let's not crib when it's turning on them. This meteoric rise, raised warning bells though, and there were two halts made on GameStop share trading to check for volatility.
Incidentally, this volatility also managed to spill on to Reddit, where this entire madness to buy GameStop stock to show a fig to the big bullies at Wall Street had started in the first place. Reddit conked off for almost an hour and then it chugged back to its rhythm.
What fueled this particular dash for GameStop is anyone's guess.
There are a few speculations doing rounds; one is that it's all due to Keith Gill aka Roaring Kitty, who was on the stand in front of the House Financial Services Committee hearing that is looking into the GameStop Rally. Gill defended its position, of having 100,000 shares in GME totaling to a neat $4 million, as an investor increasing its stake in a stock that he likes. His stubbornness to hold his stand might have resulted in some solidarity buying from fellow redditors, who are all in the game for the win.
In case you are interested, there are actually live trading game plan swaps going on in Reddit, Twitter and YouTube. Communities are really pulling their collective weight to make a stock go up, which for all practical logic would have never ballooned up if it hadn't been landed in the cross hairs of a community of redditors looking to make a statement.
In case you have not been able to wrap your head around, why this is a "deal" to be bothered by in the first place, here's a link to an episode by Johnny Harris, who makes you understand the whole thing via PokÃ©mon Cards.
Now, the question we circle back to is that is this continuous rally possible? Or is it all going to crash down one day in the future?
Once the interest pipes down, the stock will straighten itself out, that's the market mechanism at play. But the keyword here is that 'once the interest pipes down'.
Also, if those, who have bought it, keep holding down on their positions, even in the long run, GME stocks are not going to go back to the rock bottom where it was before this entire hullabaloo started.