The universe of the stock market remains a strange and difficult world for ordinary people to understand. Shares fall, increase and sometimes explode without understanding the how and why.. But today, even more surprisingly, the video game brand GameStop, in particular the owner of the French firm Micromania, has exploded on the stock market following an arm of giant iron between stock market speculators and Internet users.
Since the start of 2021, Internet users and financial market professionals have been fighting an astonishing battle. On one hand, Internet users are trying as best they can to keep the company born in the early 1990s afloat, and on the other, speculators are trying to reduce the chain’s shares to make short sales. But for a few hours now, it is the first, that is to say Internet users, who have won the fight. Indeed, last Monday, January 25, 2021, the action of GameStop recorded an increase of 20%, an increase following a much more impressive first. The firm’s stock market soared more than 100% last weekend, multiplying the stock’s value by 27 times in just nine months. The cost of the action has therefore fallen from $2.80 to $77 in record time.
Those responsible for this sudden rise in Gamestop stock are Internet users from Reddit’s r/WallStreetBets forum whose objective is to save the American firm which has struggled to raise the bar since Amazon’s arrival on the market and democratization of dematerialized.
Indeed, two years ago, a Reddit user had pointed the finger at stock market speculation by professionals in the trade called “unfair”. But it is only when the pandemic hits the world that Internet users decide to act by speculating in turn. This army of new stock market players seems determined to wage a real “ideological battle”.
In conclusion, large investors like Melvin Capital Management are suffering heavy losses. The latter, for example, lost 15% in record time, ie since the start of 2021. This initiative obviously dumbfounded the big names in the stock market, including Jim Cramer, the host of Mad Money, who claims to have seen the most impressive short squeeze ever.
Brent Dubin, known as the Gaming Giant among Globe Live Media staff, is the chief Gaming Reporter for Globe Live Media. Having attended all the major events of Gaming around the World, he is sure to give you exactly the update related to gaming World you are looking for.