GameStop Extends Meteoric Stock Surge on Boost From Musk Tweet

(Bloomberg) -- GameStop Corp. continued its skyward march in U.S. premarket trading after an Elon Musk tweet fanned the flames of the stock’s jaw-dropping rally that has sent the company’s market value surging beyond $10 billion.

The stock rose as high as $260, up 76% from the last close of $147.98. That followed Tuesday’s 93% surge, which meant GameStop has risen more than eightfold this month in a dizzying rally fueled by Reddit-charged day traders.

Following a frenzied session on Tuesday, the stock’s gains reached new extremes outside regular hours after Tesla Inc. chief Musk tweeted a link to a Reddit thread about the company. Famed fund manager Michael Burry warned that the manic rally has gotten out of hand, calling the stock’s rise “unnatural, insane, and dangerous.”

GameStop Shares Almost Always Plunge Following Earnings Reports

GameStop’s surge has captivated Wall Street and stymied short sellers including Gabe Plotkin’s Melvin Capital and Andrew Left’s Citron Research. It has also spurred calls for a Securities and Exchange Commission investigation, though experts say it’s difficult to prove chat-room posts are part of an illicit scheme to manipulate the market.

GameStop Is Rage Against the Financial Machine: John Authers

©2021 Bloomberg L.P.