GameStop shares soared to near record highs again this week, jumping 150 per cent before rapidly crashing as the struggling retailer was caught up in another dramatic trading frenzy.
The New York Stock Exchange was forced to halt GameStop’s stock numerous times this week, as it jumped from $140 on Monday to highs of $348.50, before settling at around $260.
This marks the second time this year that GameStop’s stock has endured explosive volatility, seeing stocks break records in January amid a collective and coordinated effort by amateur traders to disrupt Wall Street short sellers.
However, this time it is unclear exactly who was responsible for driving the surge in stock prices, with retail traders from Reddits r/WallStreetBets playing a significantly smaller role.
READ MORE: GameStop’s largest shareholder has made $4m an hour amid stock price chaos
According to Vanda Research, retail buying of GameStop shares was just a tenth the size as it was this week.
Others suggested the surge was due to the appointment of Ryan Cohen on Monday, who has been brought on by GameStop to oversee its shift towards ecommerce.
Whatever the reason behind the latest stock, analysts say it is indicative of serious disfunction in the stock market, warning investors to trade cautiously as more volatility is expected.
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