On Tuesday, GameStop reported Q4 earnings, its first earnings announcement since the short squeeze. Press and investor focus on the announcement was intense, and many investors were unable to dial into the earnings call, presumably because day traders had filled the line. Significant share price volatility followed the earnings announcement—including a 34% plunge the next day— serving as a reminder that the effects of new shareholder dynamics, including trading dominated by short-term holders, can persist.
The GameStop short squeeze two months ago generated significant questions about market access, short sellers and day traders. But, while these topics are worthy of debate,
The post The GameStop Effect: Risks Of Today’s Market Dynamics appeared first on COO Systems.
source https://coo.systems/the-gamestop-effect-risks-of-todays-market-dynamics/
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