GameStop(GME) Mania in the Stock Market

GameStop (GME) is an electronics retail company. The stock price of GME has soared in the past four days due to the Reddit investors activities.

Here, I use the GME stock price data from the first trading day of 2021 until January 28, 2021. This dataset is obtained from the yahoo finance and reports:

1. Read GME stock data

GME <- read.csv("GME.csv") 
head(GME)  
##        Date  Open  High   Low Close Adj.Close   Volume
## 1  1/4/2021 19.00 19.10 17.15 17.25     17.25 10022500
## 2  1/5/2021 17.35 18.08 17.23 17.37     17.37  4961500
## 3  1/6/2021 17.34 18.98 17.33 18.36     18.36  6056200
## 4  1/7/2021 18.47 19.45 18.02 18.08     18.08  6129300
## 5  1/8/2021 18.18 18.30 17.08 17.69     17.69  6464500
## 6 1/11/2021 19.41 20.65 19.01 19.94     19.94 14927600

This data set has 28 observations and 7 variables. The output above shows a part of data.

2. Table of data summary

a <- data.frame(Variables = c("Open", "High", "Low", "Close", "Adj.Close", "Volume"))
a$Mean = c(mean(GME$Open), mean(GME$High), mean(GME$Low), mean(GME$Close), mean(GME$Adj.Close), mean(GME$Volume))
a$Median = c(median(GME$Open), median(GME$High), median(GME$Low), median(GME$Close), median(GME$Adj.Close), median(GME$Volume))
a$Maximum = c(max(GME$Open), max(GME$High), max(GME$Low), max(GME$Close), max(GME$Adj.Close), max(GME$Volume))
a$Minimum = c(min(GME$Open), min(GME$High), min(GME$Low), min(GME$Close), min(GME$Adj.Close), min(GME$Volume))
a$SD = c(sd(GME$Open), sd(GME$High), sd(GME$Low), sd(GME$Close), sd(GME$Adj.Close), sd(GME$Volume))
kable(a, format = "html",  
      caption = "Table 1: Descriptive statistics for the GME stock data",
      align = "ccrr") %>%
  kable_styling(full_width = FALSE, position = "left")
Table 1: Descriptive statistics for the GME stock data
Variables Mean Median Maximum Minimum SD
Open 6.625389e+01 3.7730e+01 354.83 17.34 9.284748e+01
High 9.099000e+01 4.0970e+01 483.00 18.08 1.319050e+02
Low 4.815722e+01 3.3530e+01 249.00 17.08 5.621453e+01
Close 6.599167e+01 3.7310e+01 347.51 17.25 8.506711e+01
Adj.Close 6.599167e+01 3.7310e+01 347.51 17.25 8.506711e+01
Volume 6.729588e+07 5.1916e+07 196784300.00 4961500.00 6.653039e+07

From this table, we can see jump in stock prices once the market opened on the trading day. Stock prices also dropped down a lot each day as some of the brokerage account halted the trading of GME.

3. Plot daily high prices of January.

GME$Date <- as.Date(GME$Date, format = "%m/%d/%Y")
par(bg = "lightblue")
{plot(GME$Date, GME$High, ylab = "prices", xlab = "Date",
      type = "b", col = "darkgreen", lwd = 2, pch = 19, 
      ylim = c(0, 600), main = "High and low of the day prices of GME") 
lines(GME$Date, GME$Low, type = "b", lwd = 2, col = "red")
legend("topleft", legend=c("High", "Low"),
       col=c("darkgreen", "red"), lty = 1:2, cex=0.8)}

Most of the finance experts have said that the GME is over valued. That being said, it would be interesting to see how this stock performs over the coming weeks.