Who would have thought that GameStop would lead the start of the stock market in 2021? Gamestop is surging, and this means many things for our stock market. In the last few weeks, shares of GameStop, along with other companies, have thrived. “Rookie investors” from places such as Reddit are behind the shares.
In late 2020, Gamestop’s shares were just below $5, but GameStop had started to surge when the founder of Chewy.com, Ryan Cohen, took a stake since he believed that GameStop would have a beautiful rebound. On January 11th, Gamestop announced that they would be including new directors on their board. Suddenly the stock market started to supercharge due to people investing in GameStop shares! The investors that stood out to the crowd were individuals on the Reddit forum chat called “WallStreetBets.” They began buying the shares and urging others to do the same thing.
Andrew Left of Citron proposed that investors (from Wall Street) should bet against the stock. This resulted in Gamestop getting a 102% interest rate due to the many shares investors made. This makes it one of the shortest stocks on the market today! Reddit users became furious with Left’s report, which resulted in threats that were too violent. Left then got terrified and reported these threats to the FBI! After that, Gamestop’s stock has increased more than 800% because of the bets!
It is not just the GameStop that is surging in the stock market but also companies like Bed Bath & Beyond, Blackberry, and AMC entertainment. They all have been pushed by the Wall Streeter firms causing their shares to spike. Investors who have shortened their stock will then have to buy back their shares. AMC entertainment recently also announced that they would be introducing new finance to avoid bankruptcy. AMC was up almost 300% this week! Bed Bath & Beyond also experienced a high percental increase in their stocks.
But Wall Streeters expect numbers to resurface soon because of the out of world numbers shown! We will have to see what happens next for our stock market.