GameStop (GME) stock has spiked in recent days. It briefly touched $500 in pre-market trading today. It has been a long time since the company made a profit, but it is now back in the spotlight after CEO Ryan Cohen joined the board and the SEC launched an investigation into the company’s practices. The SEC has also criticized the dark pool market for limiting short sellers’ access to the market.
Despite the impressive performance of GameStop stock in the last year, the company has struggled to generate enough profits to justify its high stock price. This has led the SEC to launch an investigation into the company’s fundamentals and short selling practices, which could lead to a massive fall in the share price. Moreover, the SEC has also proposed new rules to improve the disclosure of short positions. These new rules are meant to protect investors against the impact of speculative trading, which is why companies that have a large number of short positions should report them.
While short selling is a risky practice, it is also a smart way to profit from volatile markets. Short selling is often more effective than investing in stocks that have been consolidating for weeks. These stocks are more likely to become sustainable winners than those that have been trading in the red for years. Still, investors should consider the risks of GME stock before jumping in with both feet. Nevertheless, if you’re a speculative trader, the 10-week support line might make a profitable play.
GME stock has been a big player in the market since its inception. The stock recently briefly hit $500 during pre-market trading. However, this high price has not come from the company’s earnings. According to the SEC, the company isn’t making enough money to justify such a high stock price. Its underlying fundamentals are not in line with the company’s expectations. Additionally, short selling has been a problem for the company in recent months.
Despite the low price, the company has been a major player in the market since it first emerged. Its stock briefly rose to $500 in pre-market trading today. However, the company hasn’t been making enough money to justify the high price. As a result, the SEC is taking a look at GME’s underlying fundamentals and the use of dark pool trading in the industry. A rigged system isn’t free.
The SEC is also reviewing the company’s operations. The stock’s profits have been deteriorating for several years now. This is a problem that has the potential to cause investors to lose money. In the long term, GameStop’s profits will eventually recover. But in the short-term, there is still a possibility that the company will fall even lower than it did today. If it does, it may be a good time to sell some of its existing stocks.