How Long Can GameStop Stock Remain High?
Stock for GameStop is still high, but that could change if Keith Gill is banned from the E*Trade platform as anticipated.
Video game retailer GameStop (GME) is staying in the news with its elevated stock price that has been artificially inflated by online commenters.
In early May, the stock price shot up by about 336% just as the share price was about to reach a historic low point. The price surge was initiated by a social media post from the same individual who caused the GME price to explode a few years ago.
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The stock price went from $11 to $48 in a few days last month, and it remains elevated at $32.14 per share right now. Much of the stock’s gains have been kept, and the price is rising, by a gain of 1.62% today in premarket trading.
A potential blow for the stock is that GameStop proponent Keith Gill, who lights a fire under meme stocks, could be banned by online brokerage service E*Trade. Gill had not posted in three years, and his recent comments helped spur the GME stock to exponential growth.
A new report says that E*Trade is considering banning him from their service, but its parent company has refused to provide any comment on the situation.
What This Could Mean for the Stock
When stocks become especially volatile, some trading services will limit or stop trading on them to protect their reputation and to protect their users. In 2021, Robinhood received heavy criticism for stopping the trade of certain stocks that were being frequently traded, and that included GameStop at the time.
If we see some sort of repeat of that event, E*Trade could receive similar criticism, and the GameStop stock could fall drastically without its major supporter.
For now, GameStop stock is climbing, but it is only a matter of time before it implodes again, as meme stocks tend to do after a short while of high market interest. Much of the GME’s stock elevation will hinge on Gill and his participation in keeping it high.
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