Who had heard of GameStop a month ago other than committed gamers and punters on the stock market? The bricks-and-mortar computer game retailer burst to prominence in recent weeks as a pawn in a supposed David-and-Goliath story, a battle of wits between plucky nerds and the wolves of Wall Street.
Spotting a chink in a hedge fund´s armour, small investors organized themselves through a small corner of social media, a reddit bearing the fitting moniker #WallStreetBets. Basically, the hedge fund had reached the not-unreasonable conclusion that computer game shops were going the way of Xtra-Vision. They borrowed shares in GameStop and sold them, hoping to buy them back at a lower price before returning them to their original owner and pocketing the difference.
*** This article was first published at thejournal.ie on 7 February 2021 *** Continue reading