GameStop Stock Soars on Reddit Hype
Short sellers squeeze pushes shares to record highs
Traders flock to Reddit-fueled "meme stock" mania
Shares of GameStop Corp. (GME) skyrocketed on Thursday, January 28th, 2021, hitting a record high of $347.51. The surge was fueled by a frenzy of buying on Reddit's WallStreetBets forum, where traders have been rallying behind the struggling video game retailer.
GameStop's meteoric rise has come at the expense of short sellers, who had bet heavily against the company. As the stock price climbed, these short sellers were forced to buy back their borrowed shares, driving the price even higher in a so-called short squeeze.
The Reddit-fueled buying spree has also sparked a broader "meme stock" mania, with traders targeting other heavily shorted companies such as AMC Entertainment Holdings Inc. (AMC) and BlackBerry Ltd. (BB).
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