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GameStop action popular with short sellers soars to Wall Street

2021-01-22T21:16:52.206Z


The American chain of video game stores GameStop saw its share skyrocket on Wall Street on Friday, probably driven by massive purchases from investors who bet down on the title. Read also: The results ball promises to be perilous for the markets Shortly before the close of the New York Stock Exchange, the title of GameStop climbed more than 41% to 60.72 dollars. The company even saw its listing


The American chain of video game stores GameStop saw its share skyrocket on Wall Street on Friday, probably driven by massive purchases from investors who bet down on the title.

Read also: The results ball promises to be perilous for the markets

Shortly before the close of the New York Stock Exchange, the title of GameStop climbed more than 41% to 60.72 dollars.

The company even saw its listing suspended several times during the session due to too much volatility.

Since the start of the year, the stock has risen by more than 220%.

GameStop is one of the Wall Street companies most targeted by “short selling”, a practice whereby an investor sells securities he does not own at a generally high price in anticipation of his return. fall and hoping to buy them much cheaper.

According to some analysts, many investors may have been forced to buy the stock to limit the risk of loss, which led to the stock's value rising.

"Move away from this action"

As a side effect of GameStop's push to Wall Street, investor Andrew Left of Citron Research has decided to no longer disseminate his analyzes on the company.

Andrew Left, who posted a video on YouTube Thursday where he deemed the action overpriced, received an avalanche of negative and sometimes threatening reactions, calling his critics an

“angry mob that owns the title.”

“It's not just insults and hacks, but also serious crimes like the harassment of underage children

,” he wrote on Twitter.

"We are investors who put safety and family first and believe that has been put at risk."

"It is our duty to move away from this action,"

added Andrew Left, who intends to take legal action against the threats he has received.

In his video, which was originally supposed to be broadcast live on Twitter but was broadcast delayed due to hacking, the investor highlighted the company's decline in revenues, its significant debt or the fact that the Its share price rise was mainly due to its popularity among inexperienced stock marketers.

Andrew Left also believed that GameStop's sales model, which relies in particular on exchanging second-hand games, is "obsolete" and that it struggles to compete with current practices, whether downloading or uploading. game via remote computing ("cloud").

Source: lefigaro

All business articles on 2021-01-22

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