After the market closes, Tesla (TSLA) CEO Elon Musk apparently joined the stack with a tweet that sent GameStop shares just above $ 200. His one-word comment – “Gamestonk !!” – was all that was needed to encourage the popular Reddit page that generates the most hype around the stock.
It was the second Musk tweet in 24 hours that created a stir for an individual stock. Etsy shares traded in the pre-trade on Tuesday after declaring that it “quite” loves the online craft market.
GameStop has risen more than 680% so far this year – an unlikely increase led by investors rallying on the WallStreetBets subreddit. These traders were essentially declaring war on the short sellers of GameStop investors who were betting that a stock would fall. The more GameStop climbs, the more money the short sellers lose.
The Reddit merchants are also hoping for other struggling companies that short sellers tend to be valued at, including BlackBerry (BB), Bed bath and beyond (BBBY), Macy’s (M) and AMC (AMC).