What the Heck Is Going on With GameStop?
We explain what a short squeeze is and how it works.
GameStop's (GME) stock has exploded over the past few days. After trading below $20 per share for most of December and the first few weeks of January, it’s now trading at well over $300 per share.
And it’s not just GameStop--it’s also movie theater chain AMC (AMC) and clothing retailer Express (EXPR), among other stocks with (ahem) ailing prospects. Why are these stocks suddenly soaring? The coronavirus pandemic has wreaked havoc on movie theaters’ profits as well as those of brick-and-mortar retailers. There wasn’t much positive news from these companies or fundamental reasons for the increased demand for these stocks.
Karen Wallace does not own shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.