And that was enough to ignite the retail trading army. Share price more than doubled in pre-market action before giving back some of those early gains. The stock added about $6 billion in market cap shortly after Monday’s opening bell, before trading was briefly halted due to volatility.
“The options position … is a relatively short term contract, so it needs to have momentum in order to be in the money, which is undoubtedly a reason why someone would want to inject more momentum,” Gellert added. Monday’s gains followed a short-lived 179% two-day run-up in the stock last month, sparked by Gill’s return to social media for the first time since 2021.Despite the renewed hype and excitement surrounding the video-game maker in recent weeks, analysts are quick to reiterate GameStop's massive moves remain disconnected from fundamentals.
Cathie Wood's ARK Invest missed out on more than $1 billion in returns by selling Nvidia stock too early