It’s a fantastic story for the kids. Unless you are the one who is going to lose huge sums in this fight. Because that is absolutely clear: a few very solid losers will come out of this. And my first guess: those with the money own the power. So as a private investor I would think very carefully about whether you want to play this game. Still, this is a very interesting story to follow.

What is GameStop?

GameStop isn’t exactly a company in its prime. It is a traditional game seller with a flawed e-commerce strategy and, above all, many loss-making stores. what time does gamestop close? They have completely missed the transition to the digital age and have become a redundant company in the ecosystem.

This has led GameStop to sink further and further into the swamp for years. In the period from the beginning of 2016 to the beginning of 2020, the share price fell by approximately 77%. There is no honor to be had. Except for a certain person named Michael Burry . He is the one who was one of the first to see the housing market crisis of 2008 coming. This story is excellently filmed in ‘ The Big Short ‘, an absolute must. His largest long position in his portfolio? For years: GameStop.

The undeniable decline of GameStop has also caught the attention of the major mutual funds. As a result, short options are traded en masse, with which they speculate on a falling price. Or even better: bankruptcy. The further the price falls, the higher their profit. GameStop is even the shortest stock of the entire market. And that gave a group of smart private traders an idea…

Wall Street Bets – the genius idiots

The strategy of the funds can make complete sense when you look at the foundation of GameStop. But no investment comes without risk. Because if the price does rise, the funds will incur significant losses.