After the market closed, Tesla (TSLA) CEO Elon Musk showed up to join the pile with a tweet that raised GameStop’s stock briefly to $ 200. one word comment – “Gamestonk !!” – it was enough to support the popular Reddit page that has been generating much of the hype around the stock.
This was Musk’s second tweet in 24 hours to create a stir for an individual stock – Etsy’s stock skyrocketed in pre-market negotiations on Tuesday after his declaration that “medium” loves the online craft market.
GameStop has gone up more than 680% so far this year – an unlikely increase led by investors who have gathered on the WallStreetBets subreddit. These dealers basically declared war on GameStop short sellers – investors who bet a stock would go down. The higher the GameStop goes up, the more money short sellers lose.
Reddit traders are also attacking other struggling companies that short sellers tend to see as overvalued, including Blackberry (BB), Bed Bath & Beyond (BBBY), Macy’s (M) and AMC (AMC).