The GameStop Corporation is an American video game and entertainment software retailer, with more than 2,000 stores across the United States. The company offers a variety of gaming devices and games for purchase or rent from its retail locations and online store.
On January 27, 2021, GameStop’s stock price surged more than 100% after a group of small investors began buying up the company’s shares to drive up the price, in an attempt to force the larger institutional investors to abandon bearish bets against struggling companies such as GameStop. The move was orchestrated by members of the WallStreetBets subreddit, who have been active in trying to find stocks that they believe are undervalued by the market. The group has been involved in a number of so-called “short squeezes” in the past, most notably with the stock of struggling Canadian company BlackBerry.
how much is gamestop stock worth
As of 2:45pm EST on January 27, 2021, GameStop’s stock was trading at $76.79 per share, up from $51.01 at the close of the previous day’s trading. The surge in the stock price has come as a surprise to many on Wall Street, who had been bearish on the company’s prospects due to the COVID-19 pandemic and the shift to digital downloads for video games.
It is not clear how long the current rally in GameStop’s stock price will last, or how much further it could go. However, the sudden surge has caught the attention of regulators, with both the Securities and Exchange Commission and the New York Stock Exchange issuing statements saying that they are monitoring the situation.
What caused GameStop stock to surge 100%?
On January 27, 2021, GameStop’s stock price surged more than 100% after a group of small investors began buying up the company’s shares to drive up the price, in an attempt to force the larger institutional investors to abandon bearish bets against struggling companies such as GameStop. The move was orchestrated by members of the WallStreetBets subreddit, who have been active in trying to find stocks that they believe are undervalued by the market. The group has been involved in a number of so-called “short squeezes” in the past, most notably with the stock of struggling Canadian company BlackBerry.
The future of GameStop and its plans for the future
It is not clear how long the current rally in GameStop’s stock price will last, or how much further it could go. However, the sudden surge has caught the attention of regulators, with both the Securities and Exchange Commission and the New York Stock Exchange issuing statements saying that they are monitoring the situation.
The sudden surge in GameStop’s stock price is a welcome development for the company, which has been struggling in recent years. However, it is not clear how long the rally will last or how much further the stock price can go. In the meantime, regulators are keeping a close eye on the situation.
Your opinion on video game stores in general
I think video game stores are great! They offer a wide variety of gaming devices and games for purchase or rent, which is really convenient. I also like that you can buy used games at most video game stores, which saves a lot of money.
However, I think the industry is shifting to digital downloads for video games, so it will be interesting to see how video game stores adapt in the future.