American video game retailer GameStop has found itself in the middle of a ‘David-and-Goliath’ price war between internet investors and established hedge funds.
As the pandemic forced millions across the US to stay at home, many predicted shops like GameStop, which has thousands of brick and mortar locations, would fail.
This led to some hedge funds, which can bet against the future financial health of a company with what’s called a stock ‘short’, investing millions of dollars in the hope the company would fail.
But in September of last year, pet food retailer boss Ryan Cohen invested 13% in GameStop, and pushed the company to try and turn around their fortunes by becoming an online-first retailer, competing with Amazon.
This led to speculation on amateur investment websites, most notably the WallStreetBets section of Reddit, as to … Read the rest...