Can’t Stop, GameStop
No stock is having a better year than GameStop. The stock is up 247% this year and it has Reddit to thank. GameStop has become a money geyser for those that gather in Reddit’s WallStreetBets forum. (Bloomberg)
In their frenzy, WSB’s cocky hordes have managed to turn the tables in a game short sellers invented, spinning gold from the complacency of others. Before this year, GameStop was a cash register for bearish traders, who borrowed and sold more shares than the company issued. Hedge funds had been winning so long that they overlooked the tinderbox they were creating should sentiment turn.
Now it has, violently. GameStop, which isn’t expected to turn a profit before 2023, has seen its market value triple to $4.5 billion in three weeks, burning the skeptics whose any attempt to cover is likely to further propel its ascent.