How GameStop Became One of the Year’s Hottest Stocks
- 3 years ago
How GameStop Became
One of the Year’s Hottest Stocks.
At the onset of the pandemic, GameStop
was one of the hardest-hit retailers, already
suffering from the shift to online sales.
Just last April, the company’s shares could
be purchased for $3.25 each, but by close on
Tuesday, they were valued at $148 a pop.
The stock's value began to rise when Ryan Cohen, founder of Chewy, began lobbying for the company to establish itself as a rival to Amazon.
Wall Street viewed this as an opportunity to
short the stock, which involves selling shares with the intention of buying them back after prices fall.
Small investors saw the opposite and began
buying up cheap stock, which caused a 300%
increase in GameStop’s gains in the last year.
Analysts remain unsure how the saga
will play out, but they think that both sides
will face consequences
One of the Year’s Hottest Stocks.
At the onset of the pandemic, GameStop
was one of the hardest-hit retailers, already
suffering from the shift to online sales.
Just last April, the company’s shares could
be purchased for $3.25 each, but by close on
Tuesday, they were valued at $148 a pop.
The stock's value began to rise when Ryan Cohen, founder of Chewy, began lobbying for the company to establish itself as a rival to Amazon.
Wall Street viewed this as an opportunity to
short the stock, which involves selling shares with the intention of buying them back after prices fall.
Small investors saw the opposite and began
buying up cheap stock, which caused a 300%
increase in GameStop’s gains in the last year.
Analysts remain unsure how the saga
will play out, but they think that both sides
will face consequences