The stock of Gamestop (NYSE:GME) caused a sensation again on Wednesday. After the CFO resigned, the stock posted extreme price gains shortly before the closing bell, triggering circuit breaker several times.
But without success. After the trading hours it continued with violent fluctuations, at times the price shot up another 100 percent.
The WSB investors are back:”I believe that the AI-Model of GameStop’s share price, which predicts $130k a share, is predicting this because it believes that we will hit $800 before 2/26, therefore causing the Mother of All Gamma Squeezes. Which will then trigger the infinity short squeeze which sends us to $100k+.”-said Reddit user that goes under KitrosReddit.
This was his conclusion after a lengthy post where he tried to explain why we may see a real short squeeze this time.
In the eyes of the diamond hands GME stock holders, short squeeze is going according to plan.
I sold all my Apple stocks for GME yesterday.It honestly felt like a dream. I never in a million years thought I would be urgently selling freaken APPLE for GAMESTOP shares. How in the world is this real?reddit user- bighomiej69
On Tuesday, the company announced that CFO Jim Bell would be vacating his post on March 26th . Gamestop has started looking for a capable successor, should someone not be found in time, chief accountant Diana Jajeh will take over the tasks first.
The company did not give a reason for Bell’s resignation. Bloomberg later reported that the manager had to resign under pressure from influential shareholders because there had been disagreements about the strategy.
Investor Ryan Cohen is said to have played a key role in this, having taken on a position on the board of directors in January. Many speculators consider him to be the bearer of hope for a comeback, because he had already successfully turned the pet supply retailer Chewy inside out.
Investors therefore drew hope that there might be a future for the troubled company. “Wall Street Bets” was temporarily unavailable because so many forum users wanted to log in.
Other meme stocks also went up.
The shares of the cinema operator AMC climbed by 18 percent and after-hours increased by a further 22 percent. Headphone manufacturer Koss rose 55 percent and again as much in after-hours trading. NAKD, SNDL and EXPR are also among the winners.
The new rocket rise in GME stock price could mean new problems for shortsellers . They had withdrawn significantly after the price capers in January, but have recently become much more active again.
According to the financial blog “Zerohedge”, Monday was the day on which the short sellers had significantly increased their shares again. The increase was greater than it has been since June.
Just last week, key players in the Gamestop rally testified to the US Congress. These included the head of the hedge fund Melvin Capital, Gabriel Plotkin and the head of the Robinhood.