A short sale has forced a large majority of GME stock holders to sell their shares in late 2019, creating the perfect conditions for a massive short-squeeze rally. In late January, Ryan Cohen was appointed to the board of directors, creating a bullish environment for the stock. With the addition of Cohen, the company is now ranked in the S&P Midcap 400. While many analysts are bullish on the company, the shorts’ overbet has led to a massive rally in shares.
It seems that the GME stock price may have peaking too early, which could lead to underperformance. The SEC has launched an investigation into the market’s swings, including whether or not the company has been making enough money to justify the dramatic increases. The regulator is also considering whether or not the industry is allowing short sellers and dark pool trading practices are contributing to this volatile performance. A bearish trend on $GME stock is not something to ignore, but investors should carefully consider the risks before making a decision.
The stock opened at $265 and has since risen to $480. Despite this soaring price, the company has not yet generated enough profits to justify the dramatic price swings. Despite this, investors have already seen a return on their investment of over 1,000%. With the current price of GameStop, a $10,000 investment in GME stock would be worth more than $113,174. If you’re worried about investing in GameStop, you can consider purchasing GameStop stock at the low end of the market.
The SEC is examining the market structure of GME, despite the price swings. The regulator is investigating large volume changes, frequent Reddit mentions, and elevated short interest. Additionally, the commission is also looking at payment for order flow and digital engagement practices. Another area under scrutiny is dark pool trading and short selling. The SEC is closely examining these market dynamics. If you think GME stock is a good investment, wait until the SEC takes action.
After all, GameStop shares opened at $265 and rose to $480. The SEC has since banned trading in GME stock. The rumor is that the company has not been making enough profits to justify the price increases. The SEC has also looked at payment for order flow and digital engagement practices. The price swings are a part of the collective resentment that has occurred in recent months. The company is still a good investment, but it is unlikely to be profitable for investors.
If the SEC is concerned about the GME stock’s price, investors should not panic. The company is in a strong position and has a strong balance sheet. Its price is now in the high-double-digits, and GME has been making losses since July. A sharp correction will occur on this stock. The market hasn’t been rigged for some time. The SEC is also looking at the practices of short sellers in the industry.