GameStop, the world's biggest retail video game chain has had a wild and turbulent 12 months to say the least. As the video game market continues on its inevitable trek to becoming more and more of an entirely digital industry, GameStop has clearly been struggling to adjust to the changes. GameStop drama has been covered here on GBAtemp in the past, from its switch to focusing on merchandise and legacy games, to its decision to remain open following the COVID-19 pandemic, to its reversal of that decision. However, perhaps GameStop's craziest story has very little to do with the financial success of the company itself.

Prior to this month, GME (GameStop's stock ticker)'s 5 year high was approximately $33 in April of 2016. However, that figure drastically plunged down to under $4 in 2020. This month however, that figure has absolutely skyrocketed above anybody's expectations--closing out today (January 27th) at $347.23 a share. Many factors went into this large stock price; primarily a battle waging between investors of the /r/wallstreetbets subreddit and the short seller Melvin Capital. In essence, Melvin is betting that the stock price will fall below $60 by Friday, while hundreds of thousands of investors on /r/wallstreetbets have been rallying together to keep the price above $60 in hopes that it will skyrocket even further. Allegedly, "$1,000 GME by EoW is not a meme!"

Always remember to invest at your own risk, and know that nothing posted on GBAtemp or /r/wallstreetbets regarding this situation should be construed as financial advice.

Source

 

[HarveyHouston]

How did this happen? Was it a glitch in the stock prices?

 

[Julie_Pilgrim]

How did this happen? Was it a glitch in the stock prices?

investors on /r/wallstreetbets have been rallying together to keep the price above $60 in hopes that it will skyrocket even further.

--------------------- MERGED ---------------------------

How did this happen? Was it a glitch in the stock prices?

Basically,on r/wallstreetbets, people mess with the stock market for lols

 

[Seliph]

Hilarious. Just goes to show how meaningless the stock market is

 

[Silent_Gunner]

So, back in March, I asked how to best get into the stock market. @Ericzander sent me an invite link to Robinhood. As part of inviting me, I got a free penny stock. GameStop, valued at $2.90.

I held onto it this whole time. Just for laughs. Look at me now.

I said this back in March. TO THE MOON, GUYS!

 

[Viri]

I'm not a stock expert, but isn't this kind of illegal?

 

[Julie_Pilgrim]

I'm not a stock expert, but isn't this kind of illegal?

What’s illegal about it? People are just buying a stock

 

[Ericzander]

What’s illegal about it? People are just buying a stock

There actually are some shenanigans going on behind the scenes of dubious legality. Not from the /r/wsb bros but from the hedgefund billionaires. @Foxi4 would be better at explaining it than I.

 

[xdarkx]

How did this happen? Was it a glitch in the stock prices?

Not a glitch



TL;DR
Blame the redditors, specifically /r/wsb.

Wouldn't recommend investing in this stock unless you know what you are doing and are only putting in money that you are okay losing.

 

[Xzi]

Hilarious. Just goes to show how meaningless the stock market is

I mean at least for once, the theoretical "little guys" get to take money from rich hedge fund managers/corporations. They'll have to buy out the other stock owners at a much higher price in order to liquidate Gamestop. This may or may not delay Gamestop from going under. I think that's the jist of it.

Not a glitch



TL;DR
Blame the redditors, specifically /r/wsb.

Wouldn't recommend investing in this stock unless you know what you are doing and are only putting in money that you are okay losing.

Okay never mind, it's just a hilarious combination of short-sellers and also legit investors from /r/wsb buying in, creating massive demand and therefore a massive price spike. A bunch of the Redditors sold at $156, many after having bought in at $20 or less (Gamestop stock was as low as under a dollar at one point). But as of this posting it's already back to $147.98, and they're still trying to drive it higher.

 

[Sicklyboy]

This is by far one of the most fascinating things of 2021 so far. And 2021 has been a hell of a ride as it is.

 

[Deleted member 506316]

So, back in March, I asked how to best get into the stock market. @Ericzander sent me an invite link to Robinhood. As part of inviting me, I got a free penny stock. GameStop, valued at $2.90.

I held onto it this whole time. Just for laughs. Look at me now.

I said this back in March. TO THE MOON, GUYS!

WHATSAPP

 

[GhostLatte]

Great video if you haven’t seen it already

 

[leon315]

This is true. It is also true that I sold my two free GME stocks that I got for inviting you and a friend for less than $5 each and was too scared to get back in when it rose to $60. AMA.

Now imaging you bought 1000 of GME stocks when they were still 2-3$

 

[Ericzander]

Now imaging you bought 1000 of GME stocks when they were still 2-3$

I'd love to be a millionaire. I think of it every day haha.

 

[leon315]

G

I'd love to be a millionaire. I think of it every day haha.

GG, the world has finished 2020 tutorial, now with new British variant discovered, we are starting 2021 campaign! Anything could happen!

P. S. Which platform /app do you guys use for trading? Ask for a friend.

 

[TobiasAmaranth]

If I understood this stuff more, I'd have made a lot of money by seeing it happen. I watch Reddit TOP and it's been a thing for a bit.

As a disabled person with a disabled girlfriend, struggling with money and feeling like life's a dead end, these posts about it are.... depressing to say the least. Money will always be tight, and seeing the gains of people here, it's like, if I could only have a fraction of that chunk, I could fix all my problems and be able to have the modest life I want with my mate.

That, or this type of stuff is going to break the entire concept of the stock market. One of those.

 

[realtimesave]

short the shit out of this stock, that is how you will make money. a year from now this stock will be worth 25 cents a share.

 

[CanIHazWarez]

This is true. It is also true that I sold my two free GME stocks that I got for inviting you and a friend for less than $5 each and was too scared to get back in when it rose to $60. AMA.

If it makes you feel any better... early success in investing is a curse. You taste easy money and then think that you're some kind of wunderkind. This leads you to make stupid decisions, thinking that you can duplicate your earlier success.

 

[ChibiMofo]

This is the best short squeeze I have ever seen! Then again, someone is going to make a fortune selling it short now.

 

[Jayro]

This is terrible, we want GameStop to tank. They treat their employees so bad, and nothing has changed since Reggie joined them. It's a sinking ship that just had their hull bailed out, but it's still sinking.