‘Short-selling controversy’ game stop, soaring 103% during intraday
Kramer “Buy in bulk at once… a historical surprise”
Gamestop store in Manhattan, New York, USA. New York = correspondent Cho Jae-gil
The stock price of GameStop, a game supply retailer that has become a “grave for individual investors,” soared more than 100% in the New York Stock Exchange on the 24th (local time). The day before, there was only an announcement that Jim Bell’s Chief Financial Officer (CFO) would resign on the 26th of next month, and it is pointed out that speculative buying for short-term gains might have flowed. Jim Kramer, the host of CNBC’s renowned stock programme, said it was a “successful surprise operation that overthrew the short-selling forces.”
Gamestop stock price surged 46.74 dollars (103.94%) on the same day to close at 91.71 dollars. Gamestop’s stock price, which had not moved much even after the opening, started to rise sharply as the remaining purchases accumulated from 3pm. After the short-term soaring, measures were taken to halt the transaction, leaving a deadline of about 30 minutes.
The company’s stock price jumped further in after-hours trading after the close, once soaring to $197 a share. Based on the highest price, the daily increase rate reached 4 to 5 times.
From 3 pm on the 24th (local time), the stock price surged as the remaining purchases were suddenly accumulated in GameStop.
In a statement released the day before, Gamestop said, “Jim Bell, who has been GameStop’s vice president and CFO since June 2019, has decided to leave the company.” However, I did not explain the background. According to foreign media, Bell was quit the company by co-founder Ryan Cohen Tsui, who is leading the online transformation of GameStop.
GameStop is the world’s largest game-related distributor and has 5500 retail stores in the US, Canada and Australia. The stock price soared to a maximum of $483 as individual investors, who recently rebelled against the short-selling forces, started intensive buying, but then fell to the $40 level.
The stock price of theater chain AMC Entertainment, another controversial short selling item, also surged more than 18% on the same day.
Jim Kramer, who is also a famous investor, wrote in his tweet that “(GameStop’s stock price surge) is the most amazing surprise operation we’ve seen so far.” .
New York = Correspondent Jae-gil Cho [email protected]
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