Source: Securities Times
Author: Yu Shengliang
5/13,$GameStop (GME.US)$It ushered in a sharp rise after a long absence. Due to large fluctuations, trading was suspended five times during the intraday period, and the stock price once surged by more than 110%.
Earlier, legendary retail investor Keith Gill (Keith Gill), who led retail investors to push up the company's stock price in 2021, returned to social media after a lapse of three years, rekindling investors' enthusiasm for the stock.
At the time, the investor continued to post comments and pay bills, causing global investors to follow and buy game stations. In addition to the return on investment, he also expressed his dissatisfaction with the bearish players.
The incident was full of hustle and bustle, and Duan Yongping and domestic investors also participated. Afterwards, an American film company brought the incident to the screen.
With this sharp rise, one investor is$Reddit (RDDT.US)$The GameStop message board reads, “Oh my God, he's actually back.” It also claimed that “Keith Gill could cause a hedge fund to have a heart attack.”
backgrounds
In 2020, Ryan Cohen bought Game Station shares in two installments and became the majority shareholder; in addition to the increase in Game Station's business at the time, Game Station's stock price soared. It rose from a low of $2.8/share in April 2020 to $19/share at the end of the year.
At this point, differences emerged. The shorting agency believed that the stock price was inflated, shorted the company, and spread bad news about the company.
Previously, Keith Gill began opening a position on this stock. When he bought the company's shares in June 2019, the company was dying. Not only did he buy, but he also launched a new YouTube account, “Roaring Kitty” (Roaring Kitty), where he spends hours every week talking about the base of GameStop's stock. In August of the same year, he also began posting on the social networking platform Reddit.
When stocks were suppressed by bears, Keith Gill called on retail investors to buy shares at Game Station to counter shorting institutions and let the bears pay the price.
2021 “Retail vs. Wall Street” process:
In the beginning, the two sides were equally strong.
Since the beginning of January 2021, the stock price has been hovering between 18 and 20 US dollars: on January 7, the stock price once fell to 17 US dollars/share, and until January 12, it was only 20 US dollars/share.
Meanwhile, from January 13 to January 19, the stock price increased from 20 US dollars/share to 40 US dollars/share.
As stock prices rose, the incident continued to ferment and became an iconic stock for retail investors against Wall Street: retail investors thought shorting institutions were ruthless, and the bad impression of the 2008 financial turmoil resurfaced.
On January 25, the stock price had already been raised from $40 on the 19th to $77 per share.
Shorting institutions hold too many short positions, causing large losses. If the position is closed, the stock price will rise even more, and the stock price will rise all the way up like a wild horse.
On January 26, the stock price had already reached 148 US dollars/share. Short institutions such as Citron were unable to recover. They bought shares at a high price and returned them to brokerage firms, and were taken out with huge losses.
On January 27, retail investors took advantage of the victory and the stock price was 348 US dollars/share. Elon Musk came out and scolded the brokerage firm and expressed support for retail investors' actions.
On January 27, GameStop's stock price soared to $347.51 per share. According to a screenshot posted by Jill on Reddit, the return on his GameStop shares and options is more than 40 times higher. This means that his initial $53,000 became $48 million.
On January 28, the stock price reached an all-time high of 483 US dollars/share, triggering 17 meltdowns during that time.
However, at this point, government agencies and others stepped in, believing that there was a problem with the brokerage company, and indicated that they wanted to comprehensively review the problem at the game station.
Retail trading was restricted, and stock prices fell.
On January 29, the stock price fell back to 325 US dollars/share.
On February 1, the stock price fell to 211 US dollars/share. Robin Hood, a brokerage platform used by retail investors, announced that each customer can only buy 1 share of Game Station shares.
On February 2, the stock price continued to fall to 90 US dollars/share. On February 4, the stock price continued to fall to 54 US dollars/share.
influencing
In addition to the attention of celebrities such as Musk, the famous investor Duan Yongping also participated in this game. He is bearish because Game Station's stock price is too high.
Citron, a well-known shorting agency, has even changed its investment strategy due to bearish losses, saying it will not play shorting games in the future and focus on opportunities to go long.
At the beginning of 2021, best-selling author Ben Mezrich (Ben Mezrich) wrote the non-fictional literary work “Anti-Social Network: The Game Station Empty and Defeated the Amateur Retail Crowds” based on this incident, and then$Sony Group (6758.JP)$The film industry adapted and distributed the film “Dumb Money (Dumb Money)” based on this novel.
The film was released in 2023, starring Paul Dano.
Edit/jadyen