Yahoo Finance GameStop closes 19% higher after a volatile trading session
GameStop (GME) shares closed 19% higher at $63.77 each on Friday after a volatile trading day. The stock was halted for trading throughout the morning as shares soared more than 50% after brokerage app Robinhood lifted buying restrictions on the video game retailer shares.
Despite Friday’s volatility, the stock’s movements were even more severe over the last couple of weeks.
The GameStop frenzy came into full force in January when WallStreetBets members on Reddit drove up the price of the heavily shorted stock, forcing institutional investors such as hedge funds to cover their positions. Melvin Capital announced last week it closed its position on GameStop, a move which was seen as a win by retail investors.
As the short squeeze phenomena garnered international attention — the stock soared more than 1600% in January. Shares peaked at an intraday high of $483 last week. They have since them tumbled. Last week Robinhood imposed trading restrictions on the stock and has been easing those limits a little at a time. Over the last five trading sessions the stock has lost about 80% of its value.
Other stocks caught in the recent short squeezes include AMC Entertainment (AMC), Koss Corporation (KOSS) and Express (EXPR).
Earlier this week the Securities and Exchange Commission indicated it would comb through social media posts in search of any market manipulation on GameStop.
Lawmakers are expected to hold a hearing on the GameStop frenzy on February 18th. Robinhood CEO Vlad Tenev and some of Wall Street’s hedge funds are expected to be called to testify.
Ines covers the U.S. stock market. Follow her on Twitter at @ines_ferre
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