Have you been enjoying popcorn today, or perhaps nervously refreshing your favorite trading platform? If so, it is likely you are paying attention to GameStop (NYSE:GME) and the broader Reddit stocks rally. So with the cult of r/WallStreetBets taking GME stock up another 100% today, what do you need to know?
As Redditors continue to take GME shares to the moon, and inspire a rally in other old-school names like AMC Entertainment (NYSE:AMC) and BlackBerry (NYSE:BB), there is almost too much news to watch. We did the hard work for you.
In no particular order, here are some of the top news stories from the day:
- GME stock crossed $300 at the opening bell, hitting $354.83.
- Elon Musk tweeted “Gamestonk!!” and seemingly threw his weight behind the rally.
- Melvin Capital closed out of its short position.
- Chamath Palihapitiya announced that he closed out of his positions in GME stock. He shared yesterday that he purchased February calls with a $115 strike price. He will donate $500,000 of proceeds to a Barstool Sports small business fund.
- Charles Schwab (NYSE:SCHW) has placed limits on short-squeeze stocks GME and AMC to “mitigate risks” via its TD Ameritrade.
- Ameritrade is one of many brokerages facing outages today. Others include Robinhood, Webull and Fidelity.
- Stock-focused social media site Stocktwits also reported outages today.
- Cel-Sci (NYSEMKT:CVM) CEO Geert Kersten tweeted that change was coming in regards to what short-sellers were allowed to do.
- Similarly, David Faber said on CNBC that hedge funds were in trouble and may need rescue financing. Melvin Capital received cash infusions from Citadel and Point72.
- The top securities regulator in Massachusetts says that the New York Stock Exchange should halt trading of GME stock for 30 days.
What Comes Next for GME Stock and Reddit?
So where does GameStop go next? And what does Reddit mean for the stock market?
Right now, those questions are plaguing everyone on Wall Street. From the news today alone, the parabolic moves in GME stock are going to have a lasting impact on the stock market. Social media communities like r/WallStreetBets have proven once and for all just how much power they have. How they choose to use it in the future, and its limitations, are still unknown.
However, InvestorPlace analyst Luke Lango has a bit of a crystal ball. This morning he took a look at stocks that could be the next GameStop based on their short interest and potential to fly high. You can take a look at the five stocks on his watch list here.
On the date of publication, Sarah Smith did not have (either directly or indirectly) any positions in the securities mentioned in this article.
Sarah Smith is a Web Content Producer with InvestorPlace.com.