GameStop shares headed for a second straight day of gains early Monday as Reddit’s favorite stock tried to rebound from a massive weekly loss.
The video-game retailer’s stock price climbed about 11 percent in premarket trading to $70.83 as of 7:28 a.m., building on Friday’s 19 percent rise.
But those gains left GameStop far from the peak of the Reddit-fueled rally that drove the stock to staggering heights and squeezed hedge funds that bet against it.
The Texas-based chain’s shares tumbled 80 percent last week to close at $63.77 on Friday. That price put the stock up more than 200 percent for the year but marked a steep drop from late January, when it traded as high as $483 a share.
Despite the wild swings, GameStop is still the most talked-about stock on Reddit’s WallStreetBets forum, which was widely credited with pumping it up in a campaign against short-selling hedge funds.
Users on the foul-mouthed forum recently mentioned GameStop 610 times in a single day, according to data from Quiver Quantitative, which has been tracking WallStreetBets discussions for several months. That’s more than twice the number of mentions for cinema chain AMC Entertainment, which was the second-most popular with 291.
Many WallStreetBets users celebrated GameStop’s Monday rally on a discussion thread dedicated to the stock.
“Gotta say, I’m happy for you folks that held at $50, didn’t expect this change of momentum,” one user named Nelz16 wrote. “Hope it keeps moving for you in the right direction.”
“Buy the dip and hold the line, to Valhalla we ride,” wrote tgod802, adding a pair of rocket emojis.
Reddit has embraced its role in the recent stock market revolution that’s drawn scrutiny from federal regulators and sparked a congressional hearing.
The social media firm ran a five-second Super Bowl ad that paid tribute to the “underdogs” like those responsible for the GameStop saga. Reddit CEO Steve Huffman also praised WallStreetBets in an interview with The Wall Street Journal, saying the forum’s turn in the spotlight “is showing the power of large communities of everyday people.”
“Not just massive institutional and professional investors get to participate in the stock market,” Huffman told the paper.
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