After GameStop share prices soared over the weekend, Elon Musk has joined in with the trend and boosted them even more.
During after-trading hours, GameStop’s shares saw a boost of 50 percent after the CEO of SpaceX and Tesla shared a link to the subreddit WallStreetBets saying “Gamestonk!” Clearly, with his following, even more people were driven to the post where GameStop stock has been a focus for a while now.
This boost comes after the share price was already boosted by 93 percent on Tuesday. By the end of the treading day, shares were worth $148. In the past week, the retailer’s stock price has basically quadrupled.
In an interview with Reuters, Jacob Frenkel, a former Exchange Commission enforcement attorney and US Securities employee, explained that an investigation from the SEC at some point in the future shouldn’t be ruled out.
He said that SEC investigations are made from this type of situation. When stock prices fluctuate with such volatility without any corporate reasoning, only opinion-based influence over the movement.
Last week WallStreetBets set their sights on GameStop stock, and it rose incredibly high, reaching an all-time high of $159.18 by last Friday. This week the stock shows no signs of losing popularity, though it probably won’t be the most-actively stock in the US again like it was last Friday.
Michael Futter, an industry analyst, believes that those purchasing the shares are simply out to make some quick profit. This means that they’ll sell their shares once the price is raised, and eventually the share price will drop back to as low as it was before all this, $20.
GameStop has been in some financial trouble over the past two years, but now the company looks set to make a comeback. With all this attention on their shares, they may well end up with a brand new range of shareholders who will have an influence over certain decisions that get made regarding the company’s closure of stores or opening them.
With the boosts that the games industry has seen during the pandemic, now seems like the perfect time to invest in it. However, there’s no telling what will happen to the boost in the activity once the pandemic eases off. For many, this could be a short-term gain, or a long-term one.