How a Group of Redditors Caused GameStop Stock to Surge
Written by SOURCE on January 28, 2021
GameStop, a company that was expected to close hundreds of stores in 2021, has made a stunning comeback in the stock market. And it’s all thanks to an army of Reddit users who were gutsy enough to take on big Wall Street.
According to CNBC, GameStop’s share price went from under $20 at the beginning of the month to more than $347 by the end of Wednesday. This surge is, of course, great news for the failing video game retailer, but has caused a massive headache for hedge funds and big-time investment firms that were betting against it.
But what exactly caused the shares to skyrocket in such a short period of time? Who benefited from the surge? Who took a massive hit? And how will this frenzy potentially impact the trading world? We’ve attempted to explain all of that and more in the following breakdown.
