GameStop is currently worth more than American Airlines, thanks to Reddit, day traders, and Elon Musk
January 27, 2021
Shares in GameStop, a Texas-based video game retailer, started rising on Jan. 11, and now the company s market value is higher than American Airlines Group Inc., Under Armour Inc., and other large companies. By end of trading Tuesday, GameStop was worth more than $10 billion, up from $1.2 billion at the beginning of the year. The most recent jump in market valuation was fueled by a tweet Tuesday from Elon Musk, but the engine driving GameStop s bizarre reversal of fortune is individual day traders who frequent Reddit s WallStreetBets forum.
GameStop Value Surges Past $10 Billion as Shares Nearly Double
Bloomberg 1/27/2021 Bailey Lipschultz
(Bloomberg) The skyward march in GameStop Corp. accelerated Tuesday, its stock nearly doubling during exchange hours and then surging another 50% after being name checked in a tweet by Elon Musk. Its market value flew past the $10 billion mark via a year-to-date rally that is pushing 700%.
Thanks to the gain, GameStop is now worth more than 10% of S&P 500 stocks including American Airlines Group Inc., Under Armour Inc. and Invesco Ltd. It started the year with a market capitalization of $1.2 billion. Shares of the U.S. company listed on German exchange Tradegate gained 106% to $306 in early trading on Wednesday compared with Tuesday’s U.S. closing price of $147.98.
American Air surges most in two months after mention on Reddit
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American Airlines Group Inc., the most shorted major U.S. carrier, surged after a mention on Redditâs Wall Street Bets forum.
âAAL the next GME?â said Reddit user u/cardiffgiantthe1st in an online discussion Wednesday, referring to the stock tickers of American and GameStop Corp., the video-game retailer that has quintupled in value this week alone.
Americanâs stock gain adds to a flurry of share increases this week as Reddit-fueled retail traders take on short sellers and drive up prices. With stock after stock, legions of day traders have identified companies with high levels of short interest and piled in. In the case of GameStop, the soaring price has forced many short sellers to give up their positions.
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Trying to keep up with all the earnings news? It’s a challenge, but a welcome one for many investors anxious to see how Q4 turned out for the major companies.
The day begins with a fresh batch of earnings data but nothing new on the vaccine front.
Johnson & Johnson (NYSE: JNJ) had really nice earnings and so did
Raytheon Technologies Corp (NYSE: RTX). Meanwhile,
Microsoft Corporation (NASDAQ: MSFT),
Texas Instruments Incorporated (NASDAQ: TXN) and
Starbucks Corporation (NASDAQ: SBUX) wait in the wings for after the close. There’s so much to look at today it’s hard to keep track of everything.
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It’s becoming routine. The Boeing 737 MAX is back in daily service, carrying U.S. passengers safely to their destinations for about a month now.
That’s no surprise, considering this aircraft might be among the safest in history with all the scrutiny it’s gone through since being grounded in 2019 following two tragic crashes. What’s also not surprising is that
Boeing Co (NYSE: BA) still has a long way to go financially to recover from the devastation of the grounding and COVID-19. Earnings Wednesday from BA could reflect the challenges the company continues to face.
BA has been tightening its belt lately with