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GameStop again causes turmoil on the financial market
Photo:
Carlo Allegri / REUTERS
The story caused a stir last year beyond the financial world: In order to annoy hedge funds, private investors drove the share price of the US video game retailer GameStop to fantastic heights.
As a result, calm returned to GameStop, equivalent to a fall in the share price of the company, which was actually struggling due to poor business figures.
Until now.
On Tuesday alone, GameStop stock rose by 30 percent, and by almost 60 percent since last week.
On Wednesday, the stock rose again by more than 10 percent after board chairman and billionaire Ryan Cohen made the purchase of 100,000 GameStop shares public in a mandatory announcement.
GameStop announced last week that it had closed the fourth quarter of the past year with a decline in earnings and missed analyst expectations.
The development of the gross margin is particularly disappointing, said analyst Michael Pachter from the wealth manager Wedbush.
However, sales were higher than forecast.
Popular with private investors
However, GameStop shares remain particularly popular with risk-taking private investors.
After initial losses after the publication of the business figures, the share certificates increased again.
GameStop made headlines in January 2021 with a speculative battle on the stock exchange.
The company has been in crisis for some time, but the shares had staged a breathtaking rally, driven by small investors organized on the Internet.
This, in turn, resulted in huge losses for hedge funds betting on the price going down.
Small investors organized themselves via Internet forums such as Reddit.
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