Touch device users, explore by touch or with swipe gestures. Of course, u/dumbledoreRothIRA also had nearly $50,000 to sink into GameStop stock, based on their post. by Betsy Kim ... Sign in. Reset password: Click here. 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 directly to their console or pre-order a physical disk for mail delivery. The seeming inevitability of GameStop’s demise made it an obvious target for short sellers. It’s a vicious cycle that can destroy short sellers, but benefit investors who owned the stock before the squeeze. But if you think a company is going to tank, you can “short” that firm—basically, you borrow a number of shares in that company at the current price, then sell them in the hopes that you can then buy the same number of shares again later for a lower price, give those shares back to the lender by an agreed-upon time, and pocket the difference. On the other hand, it’s just as likely, and perhaps more terrifying, that u/dumbledoreRothIRA’s GameStop investment is their entire life savings, and if and when this whole thing inevitably blows up, they may lose everything. However, shorting a stock is often riskier than owning one. That Ryan Cohen, co-founder of e-commerce darling Chewy, joined the board this month is also a reason for optimism. Get 1 year for just $15. Email address. GameStop Slowly Changing After Wild Stock Market Ride - IGN Daily Fix Today on the Daily Fix, Sydnee has everything you need to know about GameStop’s latest earnings call. You can unsubscribe at any time. When you buy stock in a company, you’re (typically) making a bet that something will happen that leads that company’s stock to grow in value: a popular new product, a big executive hire, a great quarterly report, and so on. Before it's here, it's on the Bloomberg Terminal. You have a limited number of free articles. Ouch. Stock analysis for GameStop Corp (GME:New York) including stock price, stock chart, company news, key statistics, fundamentals and company profile. Earnings Announcement for Period Ending Q1/2021. Which brings us to Reddit, and more specifically, r/WallStreetBets, a half-fascinating, half-terrifying forum for meme-fueled day-traders that bills itself as “4chan with a Bloomberg terminal.” The short version of the story is this: influential r/WallStreetBets users realized that a staggering amount of GameStop’s shares were being shorted—per CNBC, it was the most-shorted stock on U.S. markets as of the latest filings. You have 3 free articles left. Community pressure to hold for more gains, rather than sell is intense, as the gravy train only lasts as long as a major selloff can be avoided. There’s a Robin Hood element to the entire bizarre affair: from the outside, it looks like a bunch of Internet-savvy everymen are beating establishment Wall Street short sellers at their own game of finding and exploiting an opportunity, no matter who gets hurt along the way. An unexpected error has occurred with your sign up. GameStop sank 31% Monday, after rallying 1,600% in January. Please try again later. You have reached your limit of 4 free articles. That drives up demand and reduces supply, further increasing the price and thus getting even more short sellers to buy, and so on. GameStop touts ecommerce optimism but stock drops following earnings report. 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