GameStop shares rise significantly for the second day in a row

Securities rose 32.8% on Thursday morning after nearly doubling on Wednesday.

Shares of GameStop, AMC Entertainment Holdings, Koss Corp, and some other companies that were at the center of the scandal with the attack on the exchanges of users of the Internet platform Reddit are rising again the second day in a row.

According to the New York Stock Exchange, GameStop shares were up 32.8% on Thursday morning after nearly doubling on Wednesday. The explosive growth the day before could be explained by changes in management – the resignation of the company’s chief financial officer, Jim Bell, who had contradictions with other management representatives. However, shares of some other companies linked to the January attack rose on Wednesday and continued to rise on Thursday. Shares of AMC Entertainment Holdings rose 18% on Wednesday and another 7.70% on Thursday morning. Shares of headphone maker Koss Corp soared 58% on Thursday morning.

There are no obvious reasons for such rapid growth in the shares of these companies; the overall situation on the stock exchanges is quite calm – the main indexes-the Dow Jones, S&P 500, and Nasdaq-declined slightly on Thursday morning, reacting to the still high data on unemployment in the United States. However, there is no reason to talk about a new large-scale attack in the manner of the one that happened in January. On the Wallstreetbets forum (one of the forums on Reddit), where the last attack was coordinated, users themselves are trying to determine the reasons for what is happening.

In January, some small-company stocks were hit by a wave of explosive growth. In particular, the value of GameStop securities soared by more than 2,000% in a month. The reason for this was a short squeeze (short squeeze – a rapid increase in the price of an asset) organized by private traders using Reddit. As a result, hedge funds that play the short market have suffered billions of dollars in losses. Manipulations with these securities caused sharp fluctuations in the US stock market.

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Author: Ivan Maltsev
The study of political and social problems of different countries of the world. Analysis of large companies on the world market. Observing world leaders in the political arena.
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Ivan Maltsev

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