GameStop News: Latest Stock Price and Reddit Updates

Citing people familiar with the matter, the Journal reported that the company asked for more cash to cover potential losses in swings from transactions in suddenly popular stocks like GameStop.

The company has faced strong criticism for restricting the trading of GameStop and other stocks, but the CEO has said in an interview that it is not due to liquidity problems.

The eccentric California tech entrepreneur is an icon for Reddit investors and has supported their cause.

Anthony Cuthertson has this report on what he is currently up to, as revealed during his discussion with Vlad Tenev yesterday.

We still haven’t heard much from George Sherman during all of this, but the veteran retail executive’s personal wealth has skyrocketed in the last week, just two years after he joined the company and acquired a 3.4% stake in 2 , 36 million shares.

Here’s the latest market roundup from AP:

Stocks rose modestly in early trading Monday, following a bumpy week that left the market with its worst weekly loss since October. Investors large and small continued to focus on GameStop, but other targeted stocks from online merchants hoping to inflict damage on hedge funds were making big changes, such as AMC Entertainment.

Meanwhile, another target for online retail investors was the price of silver, which jumped 10 percent to an eight-year high. The precious metal has become the latest target for online investors hoping to fight a battle with Wall Street players.

The Dow Jones Industrial Average was up 0.2 percent at 9:55 am EST (2.55 pm GMT). The S&P 500 was up 0.3% and the Nasdaq composite was up 0.5%. Tech companies were among the biggest winners, along with raw materials companies.

Shares of GameStop were down 3 percent, a modest change for the retailer that had seen double-digit movements for most of the past two weeks. The retailer’s trade is still limited on trading platforms like Robinhood.

Silver rose 10 percent to $ 29.70 after the traders behind GameStop turned their attention to metals. The price of silver is the highest since March 2013.

For Indy PremiumHere is James Moore with a warning to amateur investors that all that glitters is not gold.

Some of the biggest hedge funds in New York City are still licking their wounds after an extraordinary week.

We’ve already heard of Melvin Capital, which lost 53 percent of its value in January, but received fresh fund commitments from investors in the latter days of the month. The company ended the month with more than $ 8 billion in assets after starting the year with approximately $ 12.5 billion in assets.

On Friday, Citron Research’s Andrew Left, who spent two decades building his brand as one of the world’s best-known short sellers, turned his back on public details of the companies’ shortcomings, following an intense backlash against him. and others who said that GameStop’s stock was not worth its price.

“We saw the power of a new investor base, in terms of its ability to shape not just the fortunes of an individual stock, but the fortunes of a large market segment like Russell 2000,” said Sunil Krishnan, director of multiple asset funds. at Aviva Investors.

Amid wild price swings, the amount of position hedging last week by US hedge funds, buying and selling, was the highest since the financial crisis more than a decade ago, according to an analysis by Goldman. Sachs. However, its market exposure to equities is still at near record levels, the investment bank warned.

“This week represented the largest reduction in gross income for hedge funds since February 2009. The funds in their hedge sold long and short covered positions in all sectors,” Goldman wrote in a note late Friday.

“Despite this active deleveraging, the net and gross exposures of hedge funds on a market value basis remain close to their highest levels on record, indicating continued risk of positioning-driven liquidations.”

Now signs are mounting that the retail traders who moved the market last week are setting their sights beyond US stocks. On Thursday and Friday, the price of silver rebounded, taking gains to around 10 percent since messages began circulating on Reddit urging retail investors to jump in and raise prices. The price of gold has also recovered.

Such moves have highlighted the growing weight that retail traders have in financial markets, which have long been dominated by larger institutions.

“What has been surprising in recent months has been that the scale of retail engagement has started to move the dials,” said Paul O’Connor, head of Janus Henderson’s multi-asset team in London. “If you looked at that data a couple of months ago, you can see what has been going on. It’s not like these guys woke up last week. “

Additional information from Reuters

What to think of Redditors abruptly diverting their attention from punishing hedge fund short sellers for gambling on GameStop towards investing in precious metals?

Here’s Jason Cozens, CEO of UK-based fintech company Glint, which promotes gold as an alternative currency, to give his opinion on what’s going on.

“We just had an unprecedented volume, an unprecedented load on the system,” insists the CEO of the trading application, explaining his company’s decision to stop allowing trading in GameStop shares last week.

Here’s my story about amateur whistleblower Keith Gill, a young dad from the Wilmington, Massachusetts suburbs, who was so influential in inspiring the Redditors to rise up against the financial Goliaths.

Chelsea Ritschel brings us the incredible story of elementary student Jaydyn Carr from San Antonio, Texas, whose mother gifted him GameStop stock for Kwanzaa in 2019 as a means of teaching him about finance.