Game starts again as GameStop shares doubled

GameStop Corp (GME) shares surged in the final hour of trading on Wednesday, closing the day with a rally. Shares finished 105% higher, closing at $91.71 after hovering below $50 for most of the day. No single reason could be attributed for the sudden spike.

Options activity tied to GameStop also hit the highest level in two weeks, with bullish contracts significantly outpacing bearish ones.

Since GameStop’s meteoric rise in late January, individual investors remained bullish and was re-energised when Keith Gill, a trader on Reddit disclosed that he had doubled down on the shares.

Other popular meme stocks on Reddit’s WallStreetBets forum that surged during January also jumped on Wednesday. The sudden surge puzzled WallStreetBets users as they flocked to the WallStreetBets forum for answers.

GameStop shares are still trading significantly below its peak of $483 in late January. The short interest on GameStop at the start of 2021 was well over 100%. As of February 12, it stood roughly at 30%, which is the lowest since the end of December 2018.