GameStop looked like it was going to go out of business when its stock suddenly skyrocketed to $483 on January 2021.
GameStop is one of the few retailers for video games that is still in business because of everything moving online as a result of the pandemic. But experts don’t see GameStop reaching that peak again. The only reason this happened to GameStop was because of the “short selling” method used by investors where they sell shares that they don’t have, banking on the company failing, and profit by buying back those shares. Other companies that have peaked and are now declining are Bed Bath & Beyond, AMC Theaters, and Blackberry.
Decisions by trading platforms like Robinhood and Trading 212 have restricted users to trade their shares in companies in the United States and the U.K.
GameStop was the single most-traded U.S stock on Tuesday when it was allowed. Even the CEO of Tesla Elon Musk says “GAMESTONK!!” when it was at $200 a share.
Many people have been making millions from GameStop’s random rise and fall of glory, and many people have been losing millions. But this is a perfect example of a buy low, sell high scenario. Michael Bury, a founder of Scion, invested in the company during the start of the pandemic. The company wasn’t doing too well and was as low as $2.57, and Michael invested $15 million dollars and now the share peaked at $483.