Explaining the Gamestop Short Squeeze using Ιntraday Data and Google Searches
The Journal of Prediction Markets
; 16(3):67-79, 2023.
Article
in English
| ProQuest Central | ID: covidwho-2285302
ABSTRACT
This article examines the recent short squeeze of the GameStop (GME) stock in early 2021. This event, although not the only case of short squeeze, has some idiosyncratic features that makes it extremely interesting, mainly because it was organized by non-institutional investors through social media like Reddit. Using intraday data during the period 4/1/2021-26/3/2021, we conclude that volume and Google searches provide useful information which enable us to explain the GME performance. Moreover, we show that information on volume and Google searches can provide investors with valuable data, but the faster investors have access to this information, the greater the advantages. This analysis could be very useful for scholars and practitioners who examine profitable investment strategies when such conditions emerge in the markets, and it also provides some thoughts for regulators regarding the impact of networks, social or not, on the stability of the financial markets.
Business And Economics, Gamestop, Granger Causality, Short Squeeze, Google Searches, Prediction markets, Trends, Institutional investments, Hedge funds, Securities markets, Pandemics, Social networks, Engineering schools, Prices, Coronaviruses, Internet stocks, COVID-19, 61131:Colleges; Universities; and Professional Schools, 52394:Portfolio Management and Investment Advice
Full text:
Available
Collection:
Databases of international organizations
Database:
ProQuest Central
Language:
English
Journal:
The Journal of Prediction Markets
Year:
2023
Document Type:
Article
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