Will the Game ever Stop?
September 09, 2021 @ 11:39 +03:00
GameStop is an American video games chain that was previously in a difficult situation due to competition from the digital distribution of computer games and the economic impact of the pandemic, causing the share price to fall and prompting many institutional investors to short the stock. At the same time, some investors suggested that GameStop shares were undervalued.
Everything changed in January 2021, when Reddit users initiated a historic short squeeze on GME on various stock exchanges. This led to serious financial losses for some of the big bearish players in the US stock market, particularly hedge funds.
In just two weeks, a coordinated buying by small investors boosted the share price from $20 to $500 per share! The volatility has now settled somewhat, with the stock currently trading around $197.
Yesterday, despite reporting rising sales in their quarterly earnings report, GME shares fell by more than 7% in after-hours trading. How will the stock perform at today’s US market open?
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