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Summary
- Reddit supporter buys 50,000 more GameStop shares, triggers another rally.
- Keith Gill says he has now 100,000 GameStop stocks, which could be worth around $4 million.
- Around 19 million GameStop stocks had exchanged hands on Monday.
Stocks of American consumer electronics company GameStop Corp (NYSE:GME) surged yet again after a Reddit supporter revealed that he acquired 50,000 more shares of the firm. GameStop stocks were trading at $46 at close on Monday, an increase of 13 per cent from the previous close.
Keith Gill, the man believed to be behind the Reddit-led GameStop surge about a fortnight ago, said on Friday that he now owns 100,000 stocks of the company, adding more fuel to the blistering rally.
His remarks led to a frenzy of buying and selling of the stock on Monday. The value had dropped significantly after witnessing record highs in late January but gained back some of the lost grounds recently. The stock had reached from $20 a piece to around $325 in intraday trading late last month.
Some 19 million shares were traded at close on Monday, which indicated investors were still open for big bets on the stock. Mr. Gill had posted his latest purchase on his Reddit handle late on Friday. He now owns a total of 100,000 GameStop stocks, worth around $4 million, said a report.
©Kalkine Group 2021
GameStop Frenzy Not Over Yet?
The revelation appeared to have brought some enthusiasm to GameStop investors, many of whom are still holding on to their stocks hoping for another stock market blitzkrieg. The stock was trending on most sites, including on Yahoo and Google trends, as people searched for the latest GME news.
Last week, a US Congressional committee had grilled several top executives of brokerage firms, including Robinhood Inc., Melvin Capital, and Citadel LLC, as well as Mr. Gill on their alleged role in the stock market volatility, driven by the so-called social media-led stock campaign.
They, however, denied the charges. On his part, Mr. Gill said that he thought the stocks were a good buy and that there was no foul play. Robinhood’s Vlad Tenev said that his firm had suspended trading in the stock to curb market volatility.
The events started when a group of retail investors on the Reddit forum aggressively bought the stocks along with others to artificially increase their price. This had resulted in high market volatility. Some brokerages, however, had counselled their investors against buying the stocks.
