There's something to be said for when a relatively quiet stock – GameStop – a company struggling in the retail lag of the pandemic – explodes on the scene. How much? GameStop (GME) stock was trading around $18 in early January 2021, and had doubled in four days. Ultimately, it had hit a high of $483 on January 28th — jumping more than 1,000%.
How did we get there? It became a battle of the Robinhood / Reddit (/r/WallStreetBets) vs hedge fund investors. A true David and Goliath moment in our time. Individuals found that large institutional investors and hedge funds were playing the market but shorting (betting against) and Redditors and others starting calling these shorts, thus driving up the prices to record highs. Robinhood played a controversial role at first as they were blocking investors from buying.
Want to see more about the GME short squeeze saga? Read on to this visual deep dive for more: