Infotech

The stock marketers return to the assault on GameStop



Posted on Feb 25, 2019 2021 at 18:40Updated 25 Feb. 2021 at 18:43

New bout of fever on Wall Street. Less than a month after tackling short sellers, US stock marketers are once again demonstrating their ability to move the markets. The GameStop action has soared by more than 200% since the start of the week, including an increase of more than 60% on Thursday at the close in Europe. The valuation of the video game distributor, parent company of the Micromania chain in France, has jumped by more than $ 6 billion.

The return of individuals to GameStop has led to an explosion in volumes on the title. More than 23 million shares of the distributor changed hands in the first 15 minutes of trading on Thursday, according to Bloomberg, its busiest day since the peak in late January. In its wake, other favorites of retail investors have taken on a new lease of life. The AMC movie chain jumped 50% this week, while headphone and earphone maker Koss nearly doubled in value.

Andrew Left positive

It is difficult to isolate one element in particular behind this new speculative surge. What is certain is that the members of the WallStreetBets forum are always in a hurry to do battle with the establishment. According to a popular thesis on the site, the short sellers have not really turned away from GameStop. To avoid attracting attention, they would attack the stock in a roundabout way, through the listed index funds (ETFs) that hold the stock. It did not take more to revive the sling.

But this time around, the stock marketers have a new ally on Wall Street in the person of the founder of Citron Research. Andrew Left, who had given up on short selling after the title’s first soar, now believes GameStop has something to do with it. “ The lesson of the last few months is that people love video games and love to bet. He explains in a research note. The video game distributor has a major asset to break through, its historical clientele, he believes: ” GameStop must provide its customers with a platform to bet on e-sports “. And to achieve this, Andrew Left has a turnkey solution: to buy a specialist: the Esport Entertainment group. Following this publication, the shares of Esport Entertainment took more than 10% Thursday at the end of the day.

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