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GameStop Stock Nearly Doubled In Value Again Because Of An Ice Cream

GameStop Stock Nearly Doubled In Value Again Because Of An Ice Cream

Don’t lose your cool.

Imogen Donovan

Imogen Donovan

In the time-honoured words of Mamma Mia, here we go again. The value of GameStop stock has surged to ludicrous heights because a board member posted a photo of a McDonald's ice cream cone.

I mean, I count myself as fairly aware of the friction between Reddit and Wall Street, and I'm in need of a refresher on what this is all about. Last month, a subreddit titled WallStreetBets came across a scheme conjured by a bunch of hedge funds where they intended to short their GameStop stock, therefore generating a generous profit due to the low price of the company's shares. WallStreetBets seized the opportunity to buy as much stock as they could, which caused the demand to spiral upwards, increasing the value of the shares exponentially. The hedge funds' plan was foiled, and everyone lived happily ever after. Just joking: the US government got involved because meddling with the free market has implications beyond getting one up on those big cheeses in the suits.

The latest entry into this saga is this innocuous photo of a McDonald's ice cream cone, shared to Twitter by a GameStop board member named Ryan Cohen.

Pretty pedestrian, right? Wrong! Only one hour after that photo with the frog emoji was posted, GameStop's stock nearly doubled in price from under $50 to over $90. Demand was so high that trading needed to be stopped twice before the end of the day, and after-hours trading was manic. The reaction on the WallStreetBets subreddit has been ... well, as you'd expect.

The surge might have been due to this photo of the ice cream. Redditors are fond of the board member, who they call "Papa Cohen" and he is considered to be the one to turn GameStop's situation around. Or, it might have been triggered by the news that Jim Bell, chief financial officer of the company, is on his way out. Really, I can't say for certain. Will we ever be sure? Maybe.

Featured Image Credit: Paramount Pictures, Google, Pixabay via Pexels

Topics: News