GameStop's shares are now up more than 1,000% since the beginning of the year. Analysts say the stock's staggering ascent is due largely to a short squeeze, driven by a slew of individual investors who are coordinating their buying efforts on sites such as Reddit and Twitter ( NYSE:TWTR) . GameStop's stock price is up more than tenfold in 2021.
Why did the price of GameStop stocks jump so suddenly?
May 27, 2021 · Why GameStop Stock Is Still Wildly Overpriced By Will Healy - May 27, 2021 at 10:51AM You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services.
Will GameStop Squeeze again?
Oct 11, 2021 · GameStop was, of course, one of the original so-called meme stocks that elevated the stock's market value earlier this year, and though it …
Why is GameStop stock going up?
Mar 28, 2022 · The meme stock is attracting more trading interest. So what. GameStop entered the weekend with solid momentum, having soared 50% in the prior five trading days.
How high could GameStop go?
Jan 26, 2021 · So it is with gaming retailer GameStop, a relic of the pre-Internet era when people had to drive to the mall to get the latest Call of Duty, rather than download it …
How much did GameStop lose in 2019?
GameStop lost $471 million in 2019. Moreover, fourth-quarter fiscal 2020 net sales fell by only 3% from year-ago levels.
Who is Will Healy?
Will Healy is a freelance financial writer who has had a lifelong interest in the stock market, along with numerous, less-useful pursuits. Will pursued his passion for writing after working in the corporate world as both an analyst and an insurance sales professional.
Who is the founder of Chewy?
Cohen previously co-founded online retailer Chewy . Additionally, to adapt its buy-sell-trade business to a world of video game downloads, it has ventured into collectibles, board games, and other items. Unfortunately, this move may also leave GameStop with a less significant competitive advantage.
Is GameStop a digital retailer?
GameStop has used its capital to transform itself primarily into a "digital-first, omnichannel retailer.". Also, it has replaced much of its previous executive management team, removing both the CEO and CFO. Experienced internet retail leaders such as incoming chairman of the board Ryan Cohen has joined the company.
Who is John Mackey?
John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors.
Is GameStop a one stop shop?
The retailer previously built a competitive advantage as a one-stop-shop for all things gaming, especially electronic gaming. Customers could visit GameStop to find the latest video games, get refurbished hardware, and buy, sell, or trade games.
Who owns GameStop stock?
Despite GameStop’s bleak outlook, last year a well-known investor named Ryan Cohen increased his holdings of GameStop stock to more than 10% of the company, with hopes of transforming the mainly physical retailer into more of an online player.
How many stores does GameStop have?
GameStop (NYSE: GME) is primarily a bricks-and-mortar video game retailer with more than 5,000 stores. But this business model is frowned upon by many in the investment community due to both long-term and short-term factors. Long-term, fewer and fewer gamers actually journey out to physical stores to purchase their games.
What hedge fund lost money on GameStop?
In fact, one hedge fund called Melvin Capital lost so much money on its GameStop short positions that it needed a capital infusion of nearly $3 billion to shore up its finances. And GameStop isn’t the only stock that has seen this kind of tug of war between retail investors and hedge funds lately. A few others include:
How much did the company lose in 2020?
The company had a net loss of $18.8 million, or 0.29 per share.
Why GameStop?
Because it’s funny. It really is that simple. Many of Reddit’s most popular communities are based around video games, and GameStop is a particularly infamous company for many gamers. The store has a returns policy that allows customers to return games to build in-store credit that can be used to purchase other games.
What now?
Online communities of amateur investors have the ability and will continue to move the needle on stocks. If big, public shifts like this continue to happen, there may be a crackdown on communities like r/wallstreetbets for market manipulation.
