Reddit brought a Sudden Rise in the GameStop Stock

The stock market is subject to sudden ups and downs because of its volatile nature. Sometimes the most unexpected stocks can do wonders while the soaring stocks can fall. Something similar has just happened that has brought about wilderness in the stock market. The very lowly priced stock of GameStop has suddenly gone so very high that its stock value has risen by as much as 1700%. This is a very huge rise for a company like GameStop especially when the shareholders hardly expect the company to grow further.

All this has happened because of Reddit. The sudden rise has come out like it’s straight out of a movie. WallStreetBets (a page by Reddit) is known because it usually targets small companies and that is what has currently happened. Wall Street, the analysts, and the stock market as a whole are still figuring out about this frenzy that has taken place out of the blue.

Let us look at the latest statistical figures of the company clearly showing the drastic boom:

GameStop Corp. (NYSE: GME)

  • 52 Week Range: $2.57 – $482.85
  • Average Volume: 25,584,590
  • Market Capital: $28.625B
  • Forward Dividend and Yield: N/A (N/A)

GameStop Stock: Is it preferred?

Before this sudden rise, the GameStop Stock was not even in the consideration amongst the well-known stocks or the stocks which the investors loom for buying. The reason for the stock being so low is that the firm was becoming outdated with the same old games selling at low prices. The gamers and the game publishers do not in general like GameStop. The pandemic also did its job since the online platforms grew wildly during this time; the stores had to suffer a little.

The company has made its way into the headlines because of this unexpected surge in the stock price when it was least expected but still, it has not become a buy-now stock. The analysts and the investors are still not sure about the firm and Reddit has targeted this stock because it usually brings into light the small stocks. Something similar is happening with the AMC Theatres Stock and the company is also coming into notice along with GameStop.

AMC Entertainment Holdings Inc. (NYSE: AMC)

  • 52 Week Range:’ $1.91 – $20.36
  • Average Volume:  74,699,450
  • Market Capital: $3.17B
  • Forward Dividend and Yield: N/A (N/A)

The change is noticeable and large yet the stock price is very low and the rise of GameStop shines out better and brighter. The situation is getting administered but the inclination has now grown more towards joining the WallStreetBets by Reddit. This drastic change has brought up questions, curiosity, and hopes amongst the investors and analysts. However, this sudden rise needs proper monitoring and analysis before taking any firm decision upon the same.

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