As Wednesday began, it looked like any other day for the stock that has come to be best known as “GME” by its followers. It opened at just under $45 per share – vastly down from its highs during the GameStop affair a few weeks ago – and continued trading that way through the morning.
But after the market closed, it shot upwards. It was up more than 50 per cent by early Thursday.
It was not clear why such an event happened. The last time around, the rapid increase was driven by a “short squeeze” – because so many hedge funds had bet against the stock, technical trading dynamics meant that any increase in price would be accelerated by them covering their positions – but analysts ruled that out this time around.
Reddit, which hosts the “Wall Street Bets” forum that has become a haven for investors who support stocks such as GameStop and other nostalgic businesses, went down just as the surge was beginning. It was not clear whether there was any connection between the two events.