The forum Reddit was inaccessible for a short time on Wednesday after the value of the GameStop stock rose sharply. Investors of the forum were able to boost the share price from 18 to more than 483 dollars last month, but then a dive followed and the price was still ‘only’ 44 dollars on Tuesday. However, GameStop was worth more than $ 91 when the stock market closed on Wednesday.
Trading in the shares of game seller GameStop was halted twice on Wednesday due to the large price swings. According to analysts, it is unclear what the cause is. The announcement of the departure of the financial director on Tuesday may have played a role.
Last month, an unprecedented rise in GameStop was caused by many smaller investors calling on Reddit to buy the stock. In this way, investors wanted to boost the share price and thereby thwart short sellers. These shortsellers are speculating on a fall in prices and have lost billions due to the rapid rise in GameStop shares.
Despite the declining value, users called on each other through the forum to hold onto the shares and not to sell them. Wednesday’s unexpected rise caused déjà vu among many investors of WallStreetBets, the Reddit forum where the craze started. In the afternoon the forum was inaccessible for more than half an hour.
Share was also popular in the Netherlands
Also many Dutch got in on the GameStop hype. At broker BinckBank it was the most popular stock to trade in January.
US Treasury Secretary Janet Yellen held hearings in Washington on the stock race last week. The government wants to find out whether there has been market manipulation.
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