WWE stock made a massive jump after Reddit investors return
WWE’s stock price rose high after traders from Reddit boosted its value. The same thing occured earlier this year with electronics company, Gamestop. The price increased by 11% closing at $64.48 a share, on Wednesday. During the day, the stock also went to a 52-week high reaching $70.72. The number of shares traded over the day was at 1200% high with over 5 million shares.
The sudden growth was because of a certain /r/WallStreetBets, a Reddit community which is heavily involved in the stock market. A post calling WWE stock a “low risk, high reward” purchase caused it to receive a large number of upvotes boosting its price. The rise came despite average performances on WWE televised events.
The change in price also massively boosted WWE Chairman & CEO Vince McMahon‘s valuation to more than $300 million than the closing of the previous day.
WWE has been suffering recently due to budget cuts since the COVID-19 pandemic. The long list of released Superstars has reached all the way to the likes of Braun Strowman and Aleister Black. WWE will be looking to boost their performances when Summerslam welcomes back a packed crowd at the Allegiant Stadium in August.
What Happened With Gamestop?
GameStop, an American electronics company had one of the highest rises ever on the stock market with a 8000% increase in 6 months.
On 26 January 2021, the stock closed at $145.60, then increased to $345.00 the day after to a massive $469.42 on 28 January. The stock initially was a meagre $3.25.
The same group of investors tried to get back on the hedge fund owners namely – Melvin Capital. They attempted a ‘short squeeze’ to force the owners of the hedge funds to buy back shares driving the price higher. This incident seemed to quiz Wall Street, and it settled in a few months time after public outcry.
The company seemed to be in the news for days after the constant back and forth in Wall Street. However, the current value of the share is $272.61 at the time of writing this.
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