On Monday, May 13, shares of GameStop, a chain of video game stores, surged 46% on the New York Stock Exchange, reaching $25. The next day, the price jumped to $60 per share. Despite a sharp drop in early trading on Wednesday, the stock recovered to $40 by the end of the session.

FreshForex experts believe that the company's shares were once again in the spotlight after the return of YouTube streamer Keith Gill, known by the nickname Roaring Kitty. His post on the X platform about what's going on in the market was viewed more than 8 million times in just a few hours and attracted the interest of market participants.

The surge in quotes caused what is known as a "short squeeze," in which investors who bet that a stock would fall and opened short positions were forced to buy stocks that began to rise against their expectations. This situation further fueled the growth of stocks, which increased in value by hundreds of percent. As a result, the funds that bet on GameStop's stock falling suffered billions of dollars in losses.

Giacomo Pierantoni, Head of Data at Vanda Research, noted that retail investors are now providing most of the demand for the stock. According to MarketWatch experts, the situation resembles the events of January 2021, when investors also bet against those who shorted GameStop shares.

It should be noted that earlier, FreshForex analysts predicted the growth of Snapchat shares by 10% and presented their forecasts for gold, which were fully justified.

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