Title. How does a stock move so violently without any news from the company?
In: Economics
Stock prices are ultimately determined by supply and demand. If lots of people who don’t have it yet want it, they will bid increasingly high amounts until they get it. This demand doesn’t have to be rational or linked to any news: if you had enough money or friends, you could pump up the share price of many stocks just by buying at ever higher prices. Every now and then a stock price rises for the dumbest reasons: a company stock ticker is confused with that of a similar company that had big news, or a company renames itself to have “crypto” or “AI” in the name and people flock to invest. (Really, this happened.) I can’t tell you what’s happening to Gamestop or AMC, but the basic answer to your question is, the price is rising because more people want to buy the stock. I don’t know why they want it, though.
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