Gamestop Stock – How GenZ Is Hacking the Stock Market

I love this story. Gamestop is a symbol of a new generation entering equity trading at a younger age than ever in 2021, likely the best year ever on the stock market.

Gamestop is probably a failing business, so why is the stock $50 today? What is a short squeeze 101, right? When I was talking about Reddit being an example of social amplification of stock trading months ago, nobody believed me but, voila, this ‘short squeeze’ on GME stock has driven its price through the roof and lots of reddit gamblers seem to have gotten rich.

Gamestop’s stock was $17.69 on January 8th, 2021 and is now $48.51. GameStop is a company on the brink. In August 2020, its stock was in the toilet and trading at around $4 a share. A reddit movement seems to have gotten the attention even of CNBC as to how young traders are changing the game, literally.

If you don’t believe 2021 is the golden age for new traders, look at this:

Stock volumes exploded in 2020, and have increased even more in the early days of 2021:

Equities: Average daily volume

  • 2019: 7 billion
  • 2020: 10.9 billion
  • 2021 so far: 14.7 billion

So in two years, volume on the stock market is 2x. That’s Covid-19 for you.

On Tuesday, 74.6 million GameStop shares were traded, the stock’s fifth-highest volume on record, according to Dow Jones Market Data. Last Wednesday set a record volume for the stock, when 144.5 million shares were traded.

Social media amplification on the stock market is real, and young traders know how to gamify it. $GME is really a new story of trends on the stock market where ESG momentum and even activist trader movements are taking shape.

Gamestop’s Short Squeeze Is a GenZ Victory On Wall Street

As the price of the shares continued to rise, investors who had bet against the stock bought shares to cover their short positions, further boosting the stock. This drove additional short sellers out, with the rising demand fueling further share price gains. It’s been a volatile game to say the least and the bears are losing. It may be one of the best short squeeze stories ever.

Last week, Wedbush analyst Michael Pachter noted the significant short interest in GameStop at 138% of the shares available for trading, helping set the stock up for its massive short squeeze. GenZ is having a “game” of a time on this movement, also profiting while supporting a company they believe in.

The story of GameStop stock, which uses the ticker “GME,” has gone viral on Reddit and TikTok and in various finance communities. Social media amplification is really surging in terms of how stocks perform in a momentum trading small-cap growth paradise for young traders.

The Epic Rise of Momentum Trading (Penny Stocks)

Trading is becoming very popular, especially for young men under 30. Year over year, January volumes are up 92%, and from December they are up 33%. There is a lot of volume in low-priced stocks, $2 or $3 obscure stocks where volumes have exploded. That tells me people are chasing momentum. They move because they start moving. Is $GME just the first in a new line of activist attacks against bears, and a short-squeeze empire of Reddit and TikTok?

Meanwhile stocks like $POLA, $GEVO, $SUNW and $UAVS are going up in a suspicious manner. What does it mean? This is bigger than just the Robinhood or WeBull app craze. This is a new force of youth acting in the markets. While Bitcoin and crypto were once hardly ever mentioned on CNBC or Bloomberg TV, penny stocks are where the real action is.

High trading volume typically accompanies a short squeeze. The volume surge of January 2021 is enormous. And it shows no signs of slowing down with stocks at all-time highs and a rotation among penny stocks that’s fast and furious.

How high will $GME go? It doesn’t matter, it’s a symbol of a generational change. Demographics really is destiny and we are witnessing it in real time on apps like Stocktwits and TikTok.

While volume is at an all-time high, SPACs are flying and penny stocks are jumping. Many foresaw how Gamestop would behave.

Do you want to be part of a movement? Than buy $GME

Edit: Later in the day the stock went up 70% to $73. The following video is from December 28th, 2020.

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