As the American video game and consumer electronics GameStop story continues to have many tongues wagging, its share price continues to climb. Its market value now sits at over 10 billion dollars and the stock ending Tuesday up more than 92%.
Traders continue to invest their money, while others call it a gamble. The company’s stock nearly doubled during exchange hours and then surged another 50% after a business magnate and industrial designer Elon Musk put out a tweet linked to the “wallstreetbets” Reddit page which saw GameStop shares fly above $200.
Divya Balji of Bloomberg News labeled the surge a gamble more than an investment, saying investors are taking a massive gamble by piling their money into a company where fundamentals are not considered when people are investing.
The rally has also been fueled by Reddit-charged day traders who used the website’s WallStreetBets forum to pump up shares and fight back against the huge levels of short interest, which has held steady at about 140% of the float, according to data compiled by S3 Partners.
According to CNN, the video game company is up more than 680% so far this year, with an improbable spike led by investors congregating on the WallStreetBets subreddit. Those traders have essentially declared war on GameStop's short sellers, investors who have placed bets that a stock would go down. The more GameStop climbs, the more money the short sellers lose.
The saga has left the Twitter sphere in a frenzy as users flogged on to the platform to voice their opinions.
in case this is similarly helpful for anyone else...
— rachel handler (@rachel_handler) January 27, 2021
me: can u explain in 20 words what’s going on with “game stop”?
my bf: .....finance bros bet it would drop. reddit stock traders juiced it so it would rise, which fucked the finance bros
Hearing from sources that Steven Cohen lost precisely the amount of money in the Reddit/Gamestop thing that would allow him to acquire Eugenio Suarez and Sonny Gray, take on Lorenzo Cain's salary, maybe sign a lefty reliever, and do exactly nothing else this offseason.
"For those of you out there who like a David and Goliath story and you like to poke the giants, this is one you will enjoy."
— Julianna Tatelbaum (@CNBCJulianna) January 27, 2021
Excellent, gripping recap of what's behind the insane #Gamestop run from @GeoffCutmore pic.twitter.com/DjqGoUZ3CZ
New Mets owner Steve Cohen had to bail out Melvin Capital because a bunch of stock trading kids on Reddit massively pumped up GameStop, putting Melvin's $13 billion at risk of disappearing.
— Mike Masnick (@mmasnick) January 27, 2021
If that leads to the Mets cutting payroll, it would be the most Mets story ever.
IOL TECH