If you thought the ongoing situation around GameStop’s (GME) stock was over, then think again. The stock was on fire today, soaring over 100 percent, and being halted twice in the process. The market closed at 4 p.m. ET on February 24, and in the hour leading up to the closure, GameStop (GME) exploded. The stock shot up over 100%, ending the day at a valuation of $91.71. GME had seen a small rise throughout the day, catapulting after 3 p.m. ET. The sudden spike was enough to cause GameStop (GME) to be halted twice. It’s also noteworthy that Reddit is down at the time that this article is being written. If you’re unaware of the relevance, Reddit is home to r/WallStreetBets, the subreddit community that’s been a driving force behind the GameStop (GME) stock’s volatility over the past several weeks.
It’s likely that a high surge in traffic caused the website to temporarily crash. The GameStop (GME) situation first blew up back in January when the stock hit an all-time high following a short squeeze. The fallout included Robinhood restricting users’ ability to trade, as well as legal hearings. We'll continue to update this story as new information becomes available. The jump in GameStop also comes a day after the company announced its chief financial officer would resign next month to help "accelerate GameStop's transformation," which could fuel investors who believe in the long-term value of the retailer and its ability to shift from relying on physical stores to an e-commerce sales model. AMC, another "meme stock" involved in the trading frenzy last month, also jumped around 18% on Wednesday. Redditors on WallStreetBets cheered as GameStop soared. Posts on the subreddit included diamond emojis (a reference to holding a stock long term) and titles like "NEXT STOP IS THE MOON BABY" with rocket emojis, representing a belief that the stock will continue its upward trajectory. Some GameStop investors have talked publicly about not selling their positions in the company during last month's trading frenzy because they believe in its long-term potential. Around 4pm, the entire Reddit site was down for many users, though the company did not identify the cause of the outage. Within about half an hour, Reddit said it had identified the underlying issue and "systems are beginning to recover."
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