GameStop jumps as Elon Musk tweets out Reddit board that’s hyping stock

Tesla CEO Elon Musk appeared to rally behind GameStop's epic surge, tweeting out a hyperlink to the Reddit board that's largely hyped the stock.

Shares of GameStop had been up greater than 60% in after hours buying and selling on Tuesday following Musk's tweet, which linked to the "wallstreetbets" Reddit web page that has greater than 2 million subscribers. The Tesla CEO tweeted "Gamestonk!!"

The stock surged earlier within the day after Social Capital's Chamath Palihapitiya stated in a tweet that he purchased GameStop name choices, betting the stock will go increased. The stock closed up 92.7% Tuesday.

Musk's name outs to sure firms have influenced stock costs earlier than. Earlier Tuesday, he tweeted a few hand-knit wool hat he purchased for his canine on Etsy. That despatched shares of the corporate up as a lot as 8% in premarket buying and selling, although it finally closed down 2.1%.

The CEO has confronted issues with the SEC for tweeting about Tesla's stock. In August 2018, he stated he needed to take Tesla non-public at $420 per share and that he had secured the funding to take action. Musk and Tesla every needed to pay the SEC a $20 million fantastic to settle the go well with, and Musk has since agreed to submit his public statements about Tesla's funds and different matters to vetting by its authorized counsel. He infamously tweeted final 12 months that Tesla's stock was "too high," sending shares even increased every week later.

The SEC didn’t instantly reply to a request for remark.

— CNBCs Lora Kolodny contributed to this report.

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