Finance

18% rally falters after US FINRA cancels Roaring Kitty’s license

  • Gamestop shares at $126.61 up 5% on Tuesday. 
  • GME shares still one of the top trending stocks on social media.
  • Traders are betting on a new CFO revitalizing the business.

Update March 2: Gamestop hasn’t gone away and is up 5% during Tuesday’s regular session at $126.61. GME shares have recovered recently on the back of news that Gamestop’s CFO is stepping down. Social media speculation is rife that activist investor and Gamestop board member Ryan Cohen will be able to use his influence in the appointment of the new CFO, brining in someone with online retail experience. Gamestop shares had earlier rallied a18% on Monday.

GME Stock Price and News

Shares in Gamestop had returned for a sequel last week as the shares spiked up to nearly $200 without any apparent catalyst. 

Gamestop’s CFO stepping down had caught the attention of retail traders on the /wallstreetbets site as traders talked about “going again”. The spike wasn’t as dramatic as that in January but still left most commentators puzzled as to what was behind it.

Well, research reported by Reuters has provided further information on what may be happening. Reuters quotes research carried out by Massachusetts cybersecurity company PiiQ Media. PiiQ estimates thousands of bot accounts in social media hyped Gamestop other meme stocks and Dogecoin. PiiQ focused on Twitter, Facebook, Instagram and Youtube but not Reddit. But Aaron Barr CTO of PiiQ said he would expect similar results.

Reuters reports 

“Based on its authenticity scoring system, PiiQ estimates there are tens of thousands of bot accounts hyping GameStop, the meme stocks, and Dogecoin, a cryptocurrency swept up in the frenzy. Thousands of fake accounts can be purchased for as little as $200, it said.

See also  https://www.dividendinvestor.com/dividend-news/20210816/sound-enhanced-fixed-income-etf-tidal-etf-trust-nyse-sdef-declared-a-dividend-of-$0.0400-per-share/

The company did not analyze Reddit data, but Barr said he would expect to see a similar pattern of activity on Reddit, indicating bot-like or coordinated management of conversations.

A representative for Reddit did not comment beyond Huffman’s testimony. Representatives for YouTube, Facebook and its Instagram subsidiary did not respond to requests for comment. The social media platforms generally try to weed out harmful bots, said Barr.

A representative of Twitter said “bots” had become a catch-all term that can often mischaracterize the nature of the account. The company notes bots can be used on its platform for creative or innovative purposes.”

Reddit Chief Executive Steve Huffman told Congress this month that bots, artificial or fake accounts with automated content, had not played a “significant role” in GameStop Reddit message traffic.”

Ends.

GME Stock Forecast

Well, that is the question on everyone’s minds. will Gamestop modernizer and thrive or will it get left behind in the online retail trend. Investors are betting that the departure of Gamestop’s CFO will shake up and lead to a new direction, piloted by Ryan Cohen. Q4 results are unconfirmed for March 25. 

Previous updates:

Update, March 2: GameStop (NYSE: GME) saw the frenzy resurfacing starting out March, as the shares of video gaming company rocketed as much as 27% to reach daily highs at $133.94 before reversing gains to settle Monday at $120.40, still up 18.34% on the day. However, in the post-market trading, the GME stocks fell 5% to $115. No news around the videogame retailer’s stock was seen as good news, helped by Reddit’s jawboning for higher highs, which powered the shares through the roof.

See also  https://www.dividendinvestor.com/dividend-news/20201229/multi-index-2015-lifetime-ptf-cl-1-john-hancock-funds-ii-nasdaq-jrlix-declared-a-dividend-of-$0.6552-per-share/

Although the after-hours selling came on the back of the Reuters report, citing that the US Financial Industry Regulatory Authority (FINRA) canceled the license of GameStop bull “Roaring Kitty” to act as a broker buying and selling securities. Follow more stocks news here

Shares in Gamestop are trading modestly higher in Monday’s pre-market session at $106.5, a gain of nearly 5%. 

The author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

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