Gametop shares climb 18% in pre-market as frenzy continues in February

The GameStop logo was arranged on a laptop computer on the WallStreetBets forum on the Reddit Inc. website and on a smartphone on Friday, January 29, 2021 in Hastings-on-Hudson, New York, US.

Tiffany Hagler-Gear | Bloomberg Getty Images

Gametop shares had volatility in pre-market trading since Monday as reddit-fuel fractional trading continues.

Shares of the bricks-and-mortar video game retailer jumped 18% to $ 384.89 in prime trading. Shares were up nearly 2% to $ 333. The stock rose 1,625% in January.

According to data from S3 Partners, the astronomical rally has led to a mark-to-market loss of about $ 20 billion to hedge funds with lower positions than the stock. However, many short-sellers are in a slump.

Robinhood and other trading apps limit the purchase of Gametop stocks and option contracts, along with other heavy-handed names, after a week of extremely volatile trading due to a retail trading frenzy led by the 5 million-strong Reddread Thread “WallStreetBets”. “

The limits also apply to AMC Entertainment, Blackberry, Kos, Express, Nokia, Genius Brands International and Naked Brand Group.

Short selling is a strategy in which investors borrow shares of a stock at a fixed price in the hope that the market price will fall below the level when it is time to pay for the borrowed shares.

– Yun Li of CNBC contributed to this report.


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