Elon Musk, Chamath tweets soared GameStop shares, short-sellers not in a state of dwindling

GameStop shares are rising to new highs, sending its market value above $23 billion which is as much as Delta Air Lines Inc. and more than Kellogg Co.

The shares increased 157 percent to a session high of $380 in New York. The stock cap of the video game store has increased more than 20 times this month alone, making GameStop larger than a third of the S&P 500 Index stocks.

The ailing video game company shares began to go up when Chamath Palihapitiya, the CEO of Social Capital, took to Twitter to tell investors that he purchased February call options of the stock.  The options bought were valued at $115, said Chamath. "Lots of GME talk so. We bought Feb $115 calls on GME this morning,” he tweeted. Six months earlier, the stock stood at just $4.

The CEO of Tesla, Elon Musk tweeted "Gamestonk!!!!”. Apart from a one-word tweet, he linked it with a Reddit page called "Wallstreetbets’ and in the aftermarket hours, the GameStop stock price galloped even higher.

There are about 2 million subscribers on the Reddit page linked by Musk, who concentrated on pumping the stock price higher against the bets taken by short-sellers.

GameStop is a hardware and software video game corporation that performed poorly on stock markets and did disastrously by 2020. Within the two days, its shares soared up and offered a whopping return of more than 700 percent just in the first month of 2021.

At present, in the Russell 3000, GameStop is worth more than almost 90% of U.S. companies. And, just behind Zoom Video Communications Inc, it trades for around 67 times its book value, which will position it in 34th place in the ranking.