![]() Counter-Hegemonic Finance: The Gamestop Short Squeeze. As of the writing of this report, the stock has reached a high of $170.01 USD.Ĭhohan, U. 31 Recently, the stock value has skyrocketed again. What happened to the GameStop stock since the highest price? 30 The companies who saw their stock surge have settled at an average higher stock value than before the GameStop short squeeze. 29 BlackBerry Limited saw their stock price increase from an average of $6 CAD to peaking at $36 CAD. 28 AMC Entertainment Holdings Inc saw their stock price increase from an average of $2 USD to peaking at $20.36 USD. 27 Koss Corporation, Nokia, and Eastman Kodak had also seen their stock value increase dramatically. Retail traders jumped onto other stocks like AMC, BlackBerry, Express and Tootsie Roll. 26 How did it affect the market?Īt the same time that GameStop saw their stock value increase, many other corporations saw their stock values surge as well. 25 Short sellers lost approximately $70.87 billion from their positions so far this year. ![]() 24 Other hedge funds were worried about Melvin abandoning their positions and reduced their holdings in Clorox Co. 23 Citadel LLC invested $2 billion, and Point72 Asset Management invested $750 million into Melvin to help stabilize the hedge fund. 22 Melvin Capital Management, another hedge fund with a major short position, had their assets drop from $12.5 billion to $8 billion. 21 Citron, a hedge fund with a short position, closed their position with a 100% loss. One hedge fund found themselves profiting nearly $700 million. 19 Eventually, the percentage of shorts on the corporation dropped to 34%. ![]() 18 There were also four members of GameStop’s board of directors who made $20 million from selling the company’s stock. 17 As the stock price fell, $27 billion in market value disappeared. The corporation reached a market capitalization of $33.7 billion USD. 16 Timeline of events How did it affect GameStop financially? 15 On January 26, 2021, the stock would open with a value of $88.56 and close the following day with a value of $347.51. 14 This resulted in a snowball effect causing the price of the stock to keep going up. 13 As the stock value increased, short sellers were forced to purchase stock, which in turn caused the price to further increase. ![]() 12 There were also people buying call options, which may have assisted in the surge the stock value saw. 11 The subreddit saw approximately 73 million pageviews within 24 hours. Elon Musk, South African-born American entrepreneur, tweeted “Gamestonk!!” with a link to the r/Wallstreetbets. 10 After the trading restriction was lifted, the stock value continued to skyrocket. 9 Many used Robinhood, a stock trading app, which later imposed a trading restriction. 8 There were a large number of short positions against GameStop, Redditors figured that if they acted together, they could squeeze the stock and turn a profit. Citron Research, a hedge fund with many short positions on GameStop, predicted that the price of GameStop stock would drop which was heavily criticized by Redditors. The community r/Wallstreetbets is a subreddit on Reddit, a social news and forum website, who are known for high-risk stock transactions. 7 What did the online investors do to drive the stock value up? 6 Before the short squeeze, the company was the most-shorted stock in the market with over 138% of its shares being sold short. 5 They have seen a loss of nearly $1.6 billion in the past 3 years and is in the process of closing 1,000 stores. 4 The corporation has also seen their in-store sales decline by 24.6% and has closed 74 stores, bringing its year-to-date closures to 462. 3 The net sales were $1,004.7 million, which was down 30.2% compared to the previous 2019 third quarter. In this report, the corporation reported that their E-Commerce sales increased by 257% and that expenses were reduced by $316 million. 2 GameStop’s third quarter ended on October 31, 2020, placing their report before the short squeeze. As of October 30th, 2020, the stock closed with a value of $10.47 USD. 1 The corporation is listed on the New York Stock Exchange as GAMESTOP CORPORATION GME. GameStop is a Fortune 500 company with over 5,000 stores spanning across 10 countries. “GameStop” by JeepersMedia is licensed under CC BY 2.0 What was GameStop’s position before the market went crazy?
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