Infotech

GameStop: is war on Wall Street declared?



Posted on Feb 1, 2019 2021 at 17:00

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A horde of small individual investors who bend the big hedge funds. This is not trivial and it could change Wall Street. In just a few days and a few tweets, GameStop, the parent company of the moribund chain of stores Micromania, has become the new star of the American Stock Exchange. Its stock rose in less than a month from $ 17.25 to nearly $ 500, a jump of more than 1,800%.

Not that it miraculously returned to booming economic health, GameStop is actually at the center of a formidable battle between a coalition of individual investors and some of the most powerful hedge funds on the planet. Having fallen prey to short sellers who bet on a company’s falling prices, GameStop has awakened an alliance of small carriers who, by buying it, have inflated its value upwards.

Undermining the speculative projects of “hedge funds” in a concerted operation that looks like “degagisme” on the part of individuals. It has not only cost the interested parties dear but has also caused some to decline in their activities. Citron Research thus declared in a video that it was ending its encouragement of short selling, after having acted in this way for twenty years against companies that it considered overvalued, badly managed or based on fraud.

The Story is a podcast of “Echoes” presented by Pierrick Fay. This episode was recorded in January 2021. Editor in chief: Clémence Lemaistre. Guests: Christian Parisot (Aurel BGC), Alain Pitous (OFI AM) and Bastien Bouchaud (journalist at “Echos”). Director: Willy Ganne. Music: Théo Boulenger. Graphic identity: Upian. Photo: John Minchillo / AP / SIPA. Sounds: RTBF, “Robin des Bois” (1973), iJustine “The Twitter Song”, Sharp Productions, CNN, “Sacré Robin des Bois” (1993), fglmusic, Didier Awadi “Dégage”, Citron Research, “The Dead Don ‘t Die’ (2019).

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