What’s Going on with GameStop?
FILE – In this May 7, 2020 file photo, a GameStop store is seen in St. Louis. Two hedge funds are bowing out of their short positions on the money-losing video game retailer. Citron Research’s Andrew Left said in a video posted on YouTube that his company is going to become more judicious in shorting stocks. Melvin Capital is also exiting GameStop, with manager Gabe Plotkin telling CNBC that the hedge fund was taking a significant loss. (AP Photo/Jeff Roberson, File)
January 31, 2021
You may have heard many things about GameStop and its stock value, and it may have been pretty confusing for you, so here’s what’s going on with the company.
A group of Redditors on the subreddit r/WallStreetBets have decided to drive up the price of stocks for GameStop. Why? The answer is simple: to make short sellers, the people betting on the company’s decline, to lose their money, and the people buying stocks end up with a profit. So far, millions of dollars have been made.
This has gathered so much media coverage that even the White House is starting to pay attention to this.
But it doesn’t stop there, other stocks are being brought into a list of potential targets for the subreddit, such as movie theater company AMC.
In an interesting turn of events, stock trading app Robinhood has ironically restricted people from buying stock from GameStop and AMC, which has caused so much outrage that even U.S. Representative Alexandria Ocasio-Cortez even tweeted about it.
Right now, it’s hard to tell where this story is going to go, but the only thing we can do is watch it develop.
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Marc LaGrandier • Feb 1, 2021 at 6:36 pm
Great and informative article. I was reading about it over the weekend and wanted to learn more about this event. Your article helped me to become more informed about the AMC Gamestop situation, and cleared up many misconceptions that I had about the topic. I found it interesting that something like Reddit can cause change and uproar that is so massive. Keep up the great work.