GameStop Stock Explodes Higher in After-Hours Trading

gamespot stock explodes higher

One of the most legendary short squeezes of all time is still underway as short sellers can’t seem to find the top.

Traders of GameStop Corp. (NYSE: GME) stock have been locked in an epic battle for months. The leading players are the short seller firm Citron Research and the retail traders on the Reddit thread r/wallstreetbets.

On Friday, the Reddit group seemed to win the battle, but the war was only just beginning.

With only 70 million shares outstanding and a stock price of $20 per share, GameStop had a market cap of $1.4 billion on January 12. After a surge of retail buying, the stock price doubled to $40 by January 21.

Citron Research is a notorious short seller and research firm responsible for bringing Nikola Corporation (NASDAQ: NKLA) to its knees in 2020. It has maintained that GME stock will drop below $20 again.

But on Friday, January 22, a major short squeeze happened. Despite GME only having 70 million total shares, over 200 million traded hands. The share price spiked from $40 to $77 and closed the day near $65.

Monday marked another massive squeeze; the stock price continued to climb as high as $160 per share.

Tuesday’s session was so volatile that trading on GME was halted five times.

The breaking news desk for the all-in-one trading platform StockToTrade sent out the following alert at 3:46, just 14 minutes before the close:

  • GME wow all the way down to 131 and then back to 145, I will say watch this after-hours … this has the potential to squeeze higher without getting halted!! GME will probably explode higher after the bell, especially if we break thru $150.

The stock closed near $150.

Then just after the market closed, Tesla, Inc. (NASDAQ: TSLA) CEO Elon Musk tweeted one word, “Gamestonk!!”

The price soared even higher, topping out near $250 in after-hours trading. A 1,150% increase in two weeks.

At the close of trading today, GameStop had a market cap valuation of $10.5 billion. rapid-results coronavirus test on March 17. On March 18, it opened at around . It went up to the s in After-hours trading added in another $7 billion to that total.

This is an excellent lesson in how a short position can add up to infinite losses. GameStop was worth $1.3 billion at the end of 2020. Short sellers have lost over $5 billion so far in 2021.

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