On friday, shares of gamestop stock went up by 51 in trading hours at one point in the day, trading had to be halted because it was moving so quick and at one point it was up by 69 percent up to 73 dollars. So pretty nice there. This, of course, after gamestop, was all the way back at two dollars and 80 cents back in april, when a lot of people felt that they were destined to go out of business now, why did gamestop surge so much it wasn’t because of any overnight success that Gamestop saw mainly, it was because of short sellers, which are basically people betting against a stock, as well as retail investors, moving ahead of those short sellers and buying the stock when it was cheap and the short sellers moved to cover their positions. Prices began to climb because they had to buy quickly, which then drove the prices up in a process known as a short squeeze so a little complicated, and you probably just want to know what this means moving forward. Will gamestop stock continue to rise, and should you be buying some headed into this week? Personally, i feel that this is a very dangerous time to be buying gamestop stock, especially after we’ve seen such a massive price increase. It really becomes more likely that people are going to dump and we’ll see a pretty drastic drop here in after hours friday, we were already down over six percent and i do anticipate another move down on monday.
The extent to which i don’t really know. I definitely don’t think it’ll be a full fifty percent and erase all the gains that we saw on friday. The stock has been trending up all month and we did see a resistance level at 35 on the way up. So my guess is that, eventually this stock will fall back to maybe a little bit above that range again. Nothing much happened with gamestop itself, besides some recent news that they were promoting the co founder of chewie ryan cohen, to the position of board member, and he has since spoke about plans for gamestop to become a digital retail leader, which would be huge for the company. But other than that, nothing really to warrant a 60 plus game, stop right now so to those who aren’t holding game stop personally, i wouldn’t recommend buying in now, unless they’re, specifically something you like about the company long term, and even if you do, i fully expect Prices to fall in the coming days and you may be able to get in at a better price. Then this reminds me a lot of the rise we saw in kodak stock. Several months back, we saw a huge boost up, not for the same reason but anytime. You see a spike like this nine times out of ten you’re gon na see a pullback and if you’re, just looking for a quick buck, i think there’s plenty of better options out there.
But ultimately, that decision is up to you if you’re, currently holding gamestop stock. Again, it’s, ultimately your decision, but if i were holding it right now, i would definitely look to take profits. While i could, i know a strategy, a lot of people like to use is they’ll, sell off the initial amount of money they put into it and let the rest ride sort of as house money, but again i’m. Not a financial, professional and you’re going to want to do your own outside research before making investing decisions, but if it were me holding gamestop right now, i would definitely take my profits right now: here’s, a price target from yahoo finance for gamestop and the average price They have is eleven dollars and one cent definitely a little bit low compared to what we have been seeing, and you want to be careful because sometimes these can get outdated if there’s been new news, but in the case of gamestop again, i can see it falling Back down into the 40 or 45 dollar range, or so eventually, i do want to know your guys’s thoughts on gamestop stock, though whether or not you’re invested and if you guys are buying selling or holding right now. So let me know down in the comments that’s all i have for this video a bit of a shorter one today, but i’ve had a couple people asking me about gamestop, so i figured i’d do a quick video on it.
I don’t typically post on back to back days, but i wanted to get this one out before mark it open in case it helps anyone before the bell rings on monday. If you guys could do me a huge favor and smash that thumbs up button for me and subscribe, if you have yet to do so, that would be greatly appreciated. The channel has taken off in the past couple weeks and i can’t thank you guys enough.