Budapest Post

Cum Deo pro Patria et Libertate
Budapest, Europe and world news

New data suggests GameStop's latest surge is being driven by institutions rather than retail traders

New data suggests GameStop's latest surge is being driven by institutions rather than retail traders

GameStop shares have climbed again, but a slowdown in purchases by retail investors indicates Reddit may not be leading the charge this time.
GameStop is back in the spotlight with big upside moves in recent sessions, but new data suggest the price action might not be being spearheaded by retail investors as it was during the January rally led by Reddit's WallStreetBets platform.

In the past two sessions ending Tuesday, the stock had jumped by about $112 to nearly $250 each.

Figures from Vanda Research, which tracks retail investing activity in 9,000 individual stocks and ETFs via its VandaTrack platform, paint a different picture of the most recent rally in Reddit's favorite meme stock.

"Everybody's been talking about GameStop," Viraj Patel, global macro strategist at Vanda Research, told Insider on Wednesday. "You would've imagined retail [investors] again were behind that but they're not because they are buying around a tenth of what they were buying every day of net back in late January," said Patel who was in London looking at figures from Vanda Research data analytics arm, VandaTrack.

In a tweet on Wednesday, Patel said there was no sign "whatsoever" of a retail-driven short squeeze in GameStop shares.

GameStop shares on Tuesday climbed as much as 28.5% to an intraday high of $249.85. Data from VandaTrack show net dollar purchases on Tuesday were $8.1 million. The shares on Monday popped up as much as 53% to an intraday high of $210.87. On that day, net dollar purchases were $6.1 million.

Patel said there were "big spikes" in daily net purchases by retail investors on January 26 and January 27 when the GameStop retail trade was peaking. On January 26, when the stock soared as much as 95% to $150, net purchases by retail investors were $68.18 million. The following session, the stock rocketed up 157% to an intraday high of $380, with net purchases of $87.48 million, according to VandaTrack. 


Looking at the differences in net dollar purchases in January and the latest rally, "it's almost as if that gap [appears] to me like it's a different type of trader or investor behind the recent move," said Patel. "It's definitely not retail because these volumes just wouldn't have the same impact on price compared to what we saw back in January."

He said the fresh upswing in prices was likely driven by institutions.

Though it could be the culmination of a short-squeeze, with big buyers closing short positions, another possibility could be "a few speculative institutional players - long-short fund managers would be the other type that may like GameStop on a short-term basis, part of the reflation, reopening trade in the US," he said.

"Given the total volume traded (which still remains significant), we know there's other types of investors buying/selling. Unlike in [January] where the net purchases by retail account for a bigger share of the total volume," Patel said in a follow-up email.

Patel expects more retail investors to begin buying GameStop and other popular meme stocks once stimulus checks hit people's bank accounts as part of the $1.9 trillion coronavirus relief package.

GameStop shares were volatile on Wednesday, marked in part by a brief and sudden plunge of the shares before they turned positive again during the session.
AI Disclaimer: An advanced artificial intelligence (AI) system generated the content of this page on its own. This innovative technology conducts extensive research from a variety of reliable sources, performs rigorous fact-checking and verification, cleans up and balances biased or manipulated content, and presents a minimal factual summary that is just enough yet essential for you to function as an informed and educated citizen. Please keep in mind, however, that this system is an evolving technology, and as a result, the article may contain accidental inaccuracies or errors. We urge you to help us improve our site by reporting any inaccuracies you find using the "Contact Us" link at the bottom of this page. Your helpful feedback helps us improve our system and deliver more precise content. When you find an article of interest here, please look for the full and extensive coverage of this topic in traditional news sources, as they are written by professional journalists that we try to support, not replace. We appreciate your understanding and assistance.
Newsletter

Related Articles

0:00
0:00
Close
IMF Upgrades Global Growth Forecast as Weaker Dollar Supports Outlook
House Republicans Move to Defund OECD Over Global Tax Dispute
France Opens Criminal Investigation into X Over Algorithm Manipulation Allegations
Trump Steamrolls EU in Landmark Trade Win: US–EU Trade Deal Imposes 15% Tariff on European Imports
ChatGPT CEO Sam Altman says people share personal info with ChatGPT but don’t know chats can be used as court evidence in legal cases.
Intel Reports Revenue Beats but Sees 81% Rise in Losses
Politics is a good business: Barack Obama’s Reported Net Worth Growth, 1990–2025
UN's Top Court Declares Environmental Protection a Legal Obligation Under International Law
"Crazy Thing": OpenAI's Sam Altman Warns Of AI Voice Fraud Crisis In Banking
The Podcaster Who Accidentally Revealed He Earns Over $10 Million a Year
UK Government Considers Dropping Demand for Apple Encryption Backdoor
Japanese Man Discovers Family Connection Through DNA Testing After Decades of Separation
Russia Signals Openness to Ukraine Peace Talks Amid Escalating Drone Warfare
Switzerland Implements Ban on Mammography Screening
Pogacar Extends Dominance with Stage Fifteen Triumph at Tour de France
President Trump Diagnosed with Chronic Venous Insufficiency After Leg Swelling
CEO Resigns Amid Controversy Over Relationship with HR Executive
NVIDIA Achieves $4 Trillion Valuation Amid AI Demand
Tulsi Gabbard Unveils Evidence Alleging Political Manipulation of Intelligence During Trump Administration
Centrist Criticism of von der Leyen Resurfaces as she Survives EU Confidence Vote
Trump Announces Coca-Cola to Shift to Cane Sugar in U.S. Production
FIFA Pressured to Rethink World Cup Calendar Due to Climate Change
Zelensky Reshuffles Cabinet to Win Support at Home and in Washington
"Can You Hit Moscow?" Trump Asked Zelensky To Make Putin "Feel The Pain"
Church of England Removes 1991 Sexuality Guidelines from Clergy Selection
Superman Franchise Achieves Success with Latest Release
Hungary's Viktor Orban Rejects Agreements on Illegal Migration
Air India Pilot’s Mental Health Records Under Scrutiny
Jamie Dimon Warns Europe Is Losing Global Competitiveness and Flags Market Complacency
Moonshot AI Unveils Kimi K2: A New Open-Source AI Model
Martha Wells Says Humanity Still Far from True Artificial Intelligence
Nvidia Becomes World’s First Four‑Trillion‑Dollar Company Amid AI Boom
EU Delays Retaliatory Tariffs Amid New U.S. Threats on Imports
Trump Proposes Supplying Arms to Ukraine Through NATO Allies
US Opens First Rare Earth Mine in Over 70 Years in Wyoming
Bitcoin Reaches New Milestone of $116,000
Severe Heatwave Claims 2,300 Lives Across Europe
Declining Beer Consumption Signals Cultural Shift in Germany
Emails Leaked: How Passenger Luggage Became a Side Income for Airport Workers
Polish MEP: “Dear Leftists - China is laughing at you, Russia is laughing, India is laughing”
Western Europe Records Hottest June on Record
BRICS Expands Membership with Indonesia and Ten New Partner Countries
Elon Musk Founds a Party Following a Poll on X: "You Wanted It – You Got It!"
China’s Central Bank Consults European Peers on Low-Rate Strategies
France Requests Airlines to Cut Flights at Paris Airports Amid Planned Air Traffic Controller Strike
Poland Implements Border Checks Amid Growing Migration Tensions
Emirates Airline Expands Market Share with New $20 Million Campaign
Amazon Reaches Milestone with Deployment of One Millionth Robot
Yulia Putintseva Calls for Spectator Ejection at Wimbledon Over Safety Concerns
House Oversight Committee Subpoenas Former Jill Biden Aide Amid Investigation into Alleged Concealment of President Biden's Cognitive Health
×