In January, something happened in the gaming market, which shocked the whole world? You might know it as “GameStop” which now rises.
Roaming around over social media community, you should have seen memes going on, tweets regarding GameStop and Reddit. For most of you don’t know, these two things were trending, people were engaged in talking about and even news panels were debating over it as well.
Before getting into the latest updates regarding its position, it would be fair enough to have a quick recap of what happened lately.
For those who exactly don’t know about GameStop, here you go. GameStop is a store of gaming consoles, DVDs, and other electronic items. It was one of the most popular stores in America for ages, but since the pandemic arrived, they weren’t doing any good.
It sounds very simple, right? But now what’s the connection of it with Reddit?
For people who aren’t aware of Reddit, it’s a social media forum just like Facebook and Twitter. Here you join various groups such as Football forum, gaming forum, etc.
among these one of the most important ones were wallstreetbets. By the name, you should understand what this forum is all about.
Beyond your expectation, around four million users joined this group, where they discuss the stock and shares.
Now real thing happened.
As mentioned in the pandemic GameStop wasn’t working very well, people went online and bought games. Which highly affected the GameStop and things weren’t going in a good way exactly.
In stock, apart from buying or selling stock people often involve in betting on which company would fall.
To make a perfect explanation, here you go. Suppose you burrowed a PS4 DVD from your friend and sell it to someone. Let’s say you sold it for around 20$ and thought of returning it later the prices go down.
A month later, you buy that exact game for around 15$, because it got old and no one is interested. Guess what, you have made 5 dollars.
This is called Short Selling in business terminology. Although yeah, it’s sort of gambling where you bet about the company’s future and if your assumption is wrong then the price rises.
The same thing happened with GameStop, it holds a great number of Hedge Funds (companies who do these bets) that had bet on the company for losing the value of it.
But the story took the plot twist, a large number of people bought the GameStop shares and the demand raised the share prices which surely no one seen coming on board.
Meanwhile, the internet during that scenario went crazy, meme-makers took the liberty and made it interesting.
While GameStop trying to recover from memes, Elon Musk‘s Tesla who recently bought $1.5 Billion worth of Bitcoin had done something which caught everyone’s eye. After all, whenever he tweets something happens weirdly.
Currently, GameStop’s shares are rising like Phoenix, when Rocket Inc. the housing lender corporation closed their stocks at 71%, which affected the GameStop shares too.
On Monday along with AMC, GameStop also got some fueled up in their stocks by the retail investors.
What do you think of the story? Tell us in the comments section below.