The frenzy around the shares of GameStop Corp. (NYSE: GME) refuses to die down, as the video gaming company is back in the spotlight after it skyrocketed over 100% into Wednesday’s closing, settling around $92. The trading in the GME shares was halted twice due to the 100% explosion. Throughout the day, GME reported a modest advance but rallied hard in the last hour of trading alongside the surge in fellow Reddit favorites AMC, Blackberry and Tilray. The stock soared an additional 83% to $168 in the post-market trading, See all equity news
It’s being reported that the shares exploded after Board Member Ryan Cohen tweeted a photo of a McDonald’s ice cream cone with a frog emoji for a caption. Investors likely see the tremendous surge in GME as a short-squeeze 2.0 after the r/WallStreetBets,-led retail-trade craze. The bulls ignored the announcement of the resignation of GME’s Chief Financial Officer, Jim Bell, late Tuesday.
Gamestop stock news
The ramifications from the Gamestop episode are yet to be fully played out. The White House is to investigate if a tax on stock trading is worth considering in the wake of the Gamestop (GME) saga, according to reports from CNN. This would be a significant revenue source for the US as share trading has exploded during the pandemic. The US currently does not impose a tax on share trading for individuals, unlike the UK and many EU countries, where the rate varies from 0.5 to 1%. A $1.9 trillion stimulus package also needs to be funded!
However, there was news from the testimony of Keith Gill, aka Roaring Kitty, aka DeepF********Value on /wallstreetbets, that has the retail community ready to go to war again in Gamestop. Gill said of Gamestop during testimony to Capitol Hill lawmakers, “I do find that it’s an attractive investment at this price point”. Gill also appeared to have bought another 50,000 shares of GME as he shared a screenshot on /wallstreetbets on Friday afternoon.
This emboldened /wallstreetbets traders with further impetus to “go again”, and at the time of writing, shares in Gamestop have rallied 11% to $44.89 during Monday’s pre-market session.