GameStop Corp, the Dallas, Texas-headquartered electronic goods' retailer that has been at the centre of a retail trading frenzy this year, wrapped up Friday’s session 6 per cent lower after an earlier rally had eased off which again had started off by a Reddit stock discussion group’s call on betting heavily over GameStop shares which had been heavily shorted this week by a number of hedge funds, nonetheless, shares’ prices of GameStop Corp.
still managed to gain a whopping 151 per cent this week to $101.74 apiece, leaving analysts spooked. In point of fact, shares’ prices of GameStop Corp. surged as much as 350 per cent late in January this year following a similar social media call to price in on GameStop Corp shares, however, the latest leg of blistering rally of GameStop Corp.
shares that closed out Friday’s session at $101.74 apiece after hitting a session high of $142.90 per share, made it clear that a tug of war between main street retail traders and Wall Street hedge funds has been far from over.
GameStop gains 151% in the week despite weekend broader market selloff
More importantly, latest upsurge in the shares’ prices of GameStop Corp. that bolted out of the blue this week, came forth days after a Senate hearing of all parties involved in the latest leg of market turmoil caused by the social media led retail buying frenzy, while online brokerage Robinhood was grilled heavily during the hearing over its role in January’s mass-scale retail buying mania.
Meanwhile, as retail traders had again emerged out of the shadows and even sceptics had begun to believe that a main street trader-led rally on GameStop shares might have muscles to push forward further to force hedge funds to kneel down, criticizing the market turbulence resulted by GameStop mania, President and Managing Director at The Wealth Alliance in New York, Eric Dalton said, “You might be able to make some quick trading money and it could be a lot of money, but in the end, it’s the greater fool theory.
” A “Greater Fool Theory” in stock trading refers to purchasing over-valued stocks over anticipation that a “greater fool” would buy them later at a higher price.