Is GameStop’s wild ride due to market manipulation by social-media users — or are they exercising free speech?

  • 📰 MarketWatch
  • ⏱ Reading Time:
  • 57 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 26%
  • Publisher: 97%

United States News News

United States United States Latest News,United States United States Headlines

One expert said he'd be surprised if the Securities and Exchange Commission didn't make any inquiries about GameStop's volatile trading.

A clash between fanatical investors in GameStop GME, +92.71% and those betting that the company is overvalued has helped to propel the Texas-based video-game retailer’s stock into the stratosphere.

GameStop’s shares ended up 18% on Monday at a record high at $76.79, in a tumultuous day of trading where shares also touched an intraday peak at $150. Thus far in January, the stock has soared 308%, versus a mere 1% for the Dow Jones Industrial Average DJIA, -0.07% and over 2.5% for the S&P 500 SPX, -0.15%.

To be clear, there is no allegation of wrongdoing against GameStop. It has not released any significant company updates.“ ‘As a general rule, people are allowed to make foolish investment decisions.’ ” “You have a right to your opinion, on- and offline. You have the right to press your bet and urge others to join you. That’s not fraud. That’s opinion,” Singer said.

Regulators and prosecutors attempting to prove fraud have to show the behavior involved untrue statements or omission of important fact, said Singer. They also have to show that the person making those misstatements knew at the time they were untrue, misleading a “reasonable” investor who, in turn, was harmed.

“Is their prime motivation that ‘this stock price needs to stay up or I will lose my shirt?’” he added.

We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 3. in US
 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.

Marketwatch corporate shills. Melvin and Citron have been manipulating this stock. We are buying because we like it. Melvin and Citron were just caught with their hand in the cookie jar. They manipulating the stock further by claiming to have exited shorts. Shorts at 103% still.

Hope people could do the same on the French stock 'casino'! Funds plan to lower price of this stock just to force his owner to sell at low price as he needs money ! But casino has a very good business, Iike for example owner of the second market place of France after Amazon!

Cry like a lil bitch. Y’all created this game and can’t handle it? SEC’s also a fking fraud themselves. Always tryna suppress the people. Only whales can manipulate? But the little guys can’t get together in an open public forum? GTFOH!

Go catch all those Reddit investors! Good luck! Lol

Did Melvin go crying to his boy Jay again?! 🤣 wallstreetbets

This isn’t going to end well...

Was it me?

stonks_capital

So multiple hedge funds can short a stock that bad and it’s not manipulating but as soon as social media drives a stock up it’s manipulation?

How are things with the capitol now?

Question for the SEC...

Suspension coming up .. who ordered it

YoungMcCutty

United States United States Latest News, United States United States Headlines