Why GameStop Stock Soared 20% Today
Shares of GameStop (NYSE: GME) have been relatively calm over the past month. Entering the trading day today, shares were up about 6.5% over the last 30 days. And volatility had also been decreasing, with its 30-day average daily volume dropping 60% in that time. But Tuesday afternoon, the stock looked more like it did in late January, when it became a favorite of retail traders in online forums looking to create a short squeeze. As of 3:30 p.m. EDT, GameStop shares were up more than 15%, just off recent highs of the day.
This afternoon's spike happened in concert with other former meme stocks including AMC Entertainment (NYSE: AMC) and Koss (NASDAQ: KOSS), both of which also spiked double digits. There isn't company-specific news on these names today. Though the short interest on GameStop has plummeted since the frenzy earlier this year, another short squeeze could be possible.
Image source: Getty Images.
Source Fool.com
