The Wall Street madness surrounding the video game retailer GameStop continues. The stock shot up another 135 percent on the New York stock exchange on Wednesday, driven by a group of small investors who have competed with short sellers, such as large hedge funds.
GameStop fans have organized through the online platform Reddit and have been buying shares on a large scale lately. As a result, the price has been going up spectacularly for some time. But short sellers, who speculate on a fall in prices, suffer large losses as a result.
Hedge funds, including Melvin Capital, have already lost billions of dollars. Some analysts described the fight as ‘nerds vs Wall Street’.
The market value of GameStop is now around 25 billion dollars (20.6 billion euros) due to its advance. In one week, the price of the American game store chain skyrocketed by nearly 1,000 percent. The stock started at $ 19 this year and closed at more than $ 347 on Wednesday.
The White House has already said it is monitoring the GameStop situation, along with Treasury Secretary Janet Yellen. In an explanation of the Federal Reserve’s interest rate decision, Fed Chairman Jerome Powell declined to comment on GameStop.
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