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GameStop stock is jumping after the company's official Twitter appeared to acknowledge its recent surge - and Wall Street Bets is back in a tizzy

Business Insider logo Business Insider 17/05/2021 ndailey@businessinsider.com (Natasha Dailey)
graphical user interface, website: A tweet from GameStop's official Twitter account on May 11. Screenshot © Screenshot A tweet from GameStop's official Twitter account on May 11. Screenshot
  • GameStop shares rallied Monday as Redditors renewed their bullish view on the stock.
  • The company tweeted a photo of an astronaut on the moon last week, seeming to acknowledge the stock's recent surge.
  • GameStop shares dropped to their lowest in a month May 10 and have since recouped some losses.
  • See more stories on Insider's business page.

GameStop shares jumped as much as 9% on Monday as Redditors from the Wall Street Bets thread renewed their interest in the stock after the company appeared to acknowledge its rally on Twitter last week.

The stock rose 7.5% to $171.93 at 2:25 p.m. ET as Wall Street Bets members cheered the rally. "GME going vertical," one Redditer said with a rocketship emoji.

Since May 9, three of the top 10 Reddit posts were discussions about GameStop from subreddit "Superstonk," Forbes reported, citing data from social-media tracker NewsWhip. NewsWhip did not immediately respond to Insider's request for comment.

GameStop shares hit their lowest in a month on May 11, sinking to $136.50, a far cry from their all-time high earlier this year of about $350.

The next day, GameStop's official Twitter account tweeted a photo of an astronaut, wearing a space suit labeled with the GameStop logo, sitting on the moon. It read, "Been away for the past few months. What did I miss?" The company later deleted the tweet.

Then the following day, it tweeted out the Wall Street Bets acronym, "moass," which means the "mother of all short squeezes" and later deleted it as well.

Read more: I got addicted to trading stocks with Robinhood during the GameStop saga. I know amateur traders like me are playing with fire, but I worry that it's too late to break the addiction.

For months, day traders on the Wall Street Bets Reddit thread have been driving up the price of GameStop shares, which started the year priced in the mid-teens. Shares are now up eight-fold year-to-date.

Redditers have turned GameStop into a "meme stock," and popularized phrases like, "to the moon," a reference to shares exponentially rising. Day traders buying up the stock started as a way to squeeze short-sellers who bet heavily against GameStop.

Despite where the stock is trading, target prices from analysts who cover GameStop are still far below it, ranging from $3.50 to $33.

Celebrity Redditor Keith Gill, who goes by the name "Roaring Kitty" and helped drive the surge in GameStop shares, boosted his bet on the stock last month, Bloomberg reported.

As Redditors have maintained their bullish view on the stock, GameStop has strengthened its balance sheet, eliminating $216 million in debt, and embraced activist investor Ryan Cohen, who hopes to turn the company into the "Amazon of gaming." After Cohen joined the Board, the company's top executive George Sherman announced he would step down from his role this summer.

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