Due to Covid-19, the time people spend with games has increased, while the video game market has grown day by day. The “abnormal” increase in the shares of GameStop, a Dallas-based video game seller in the USA, which is one of the players of the video game market, does not go unnoticed. The shares of the company, which fell from $ 16 to $ 4 at the beginning of 2019 and traded at this price for 1.5 years, increased by 8 thousand percent in the last six months and started trading at $ 347. The reason for the increase in the shares of the company, which has increased by 200 percent in the last week, is not only the growing video market …
The company’s shares, which gradually increased as big financial names like Michael Burry and Ryan Cohen bought shares in GameStop and the release of game consoles by big companies, increased by 200 percent after attracting the attention of users in WallstreetBets, the stock-discussed section of the famous forum Reddit. Andrew Left, managing partner of Citron Research, called GameStop “suckers”, which also accelerated the rise in prices. Here is the story of GameStop’s rise in the stock market …
The video game industry grew more in 2020 than in other years, with people staying in quarantine at home due to Covid-19. With the growth of the video game market day by day, the sales of game consoles are increasing and the volume of the industry in the stock market is growing.
In the USA, Dallas-based video game seller GameStop shares, one of the players of the video game market, has recently seen a significant increase. The company’s shares, which saw its base by falling from $ 16 to $ 4 in 2019 and remained at this level for about 1.5 years, has seen a big increase since mid-August.
The shares of the company, which gradually increased gradually from the end of 2020, increased by 200 percent from $ 30 to $ 340 in a week. The company’s shares have increased by 8 thousand percent since August. Here is Elon Musk’s “Gamestonk !!” The story of the rise of GameStop, which he tweeted (game profit) and watched closely by the White House …
Shares of GameStop, a US video game and game product vendor, fell from $ 16 to $ 4 in early 2019. In this process, the company planned to close 450 stores with the effect of the coronavirus pandemic.
GameStop shares, which had been around $ 4-5 for about 1.5 years, first started to increase gradually in mid-2020. Along with the developments in the world of technology, the turning point of the shares of GameStop, which has had a small share of the increase in the shares of game companies with the release of the new models of Sony PlayStation and Microsoft Xbox, started with the announcement that big financial names such as Michael Burry and Ryan Cohen acquired the company shares.
GameStop, which gradually increased the year 2020 and closed the year at $ 30, recorded a 500 percent increase in 2020.
GameStop shares, which started in January on the same course, were at $ 35 until January 20, while the company shares started to increase at an “abnormal” level since then.
Shares of the company, which hovered at $ 35 on January 20, rose to $ 140 on January 26 and $ 325 on January 27, recording a record increase. The company shares, which increased by 200 percent in a week, increased by 8 thousand percent in six months.
After the company shares increased by 8 thousand percent in about six months, all eyes turned to the game seller GameStop. About Tesla and Space X CEO Elon Musk “Gamestonk !! “The reason why the shares of GameStop, which he tweeted as (game profit), increased approximately 70 times in a short period of six months was revealed.
On WallStreetBets, the platform of the famous forum site Reddit with approximately 2 million active users, where the stock market is talked about, buying talks about the company started. It was stated that the price of the shares of the company increased so much, as many of the forum members encouraged the purchase of the company shares and the number of these people reached hundreds as of January 20.
It is stated that the ‘collective stock market approach’ attitude in WallStreetBets, the stock exchange section of Reddit, which has 2 million members, triggered the increase in the company’s shares, and it was stated that there was an even more explosion when Andrew Left, the managing partner of Citron Research, said ‘suckers’ to those who will invest in GameStop.
Stating that the buyers of the shares are “gamblers who do not know the business model of the company” and shared a seven-minute video on the subject, Andrew Left explained why he expected the stocks to collapse, while WallStreetBets users reacted to Left after the video. Andrew Left also closed his account for comments.
After Left’s words, Reddit users rushed to the company shares as a union.
One of the important views about the company’s shares, which has also been examined by US stock exchange experts, is that its investor does not believe in GameStop.
Experts also state that those who buy the company’s shares are not interested in physical video sales rates, but rather are people who are called tradesmen, and that they buy to show people the influence of Reddit.
Stock market experts have stated that the company’s stock will soon begin to fall, while users on WallStreetBets have now set up a new collective to mislead analysts.
As the company continues to increase at full speed, Elon Musk also says “Gamestonk !!” about GameStop. (game profit) drew attention to the increase by sharing.