For the past few weeks, the stock market has been on a wild ride. And no stock has been more volatile than GameStop.

The video game retailer’s stock has skyrocketed – and then crashed – several times since mid-January. At one point, it was up nearly 1,700% from where it started the year. Now, the stock is down about 60% from its peak. But it’s still up more than 800% since the beginning of 2021.

when to sell gamestop stock

This roller-coaster ride has been a boon for some investors and a bust for others. But it’s also raised questions about the role of social media in the stock market – and whether retail investors can take on Wall Street.

The GameStop saga began on Reddit. A group of users on the forum r/WallStreetBets began buying up shares of GameStop in an attempt to drive up the stock price and score profits for themselves – and stick it to the big institutions that were betting against the struggling company. As more people bought into the idea, the stock price began to soar. Some investors made a fortune. Others held on for dear life as the stock price swung wildly up and down. Now, the dust is beginning to settle. And it’s not clear what comes next for GameStop or the stock market. But one thing is certain: This roller-coaster ride is unlike anything we’ve seen before.

What is GameStop and how did it get to be where it is today?

GameStop is a video game retailer with more than 2,000 stores across the United States. The company has been struggling in recent years as the popularity of digital downloads and streaming services has grown. GameStop’s stock price has reflected this struggle, falling from a high of $57 in 2013 to a low of $2.57 in 2019.

In 2020, the pandemic dealt a further blow to GameStop’s business. The company was forced to close its stores for several months. And when they reopened, customers were reluctant to come back. GameStop’s stock price fell to an all-time low of $2.04 in July 2020.

The good and bad of the GameStop stock roller coaster for investors

For some investors, the GameStop saga has been a dream come true. Those who got in early and held on for the ride have made a fortune. And even those who got in later and sold before the stock crashed still made a healthy profit.

But for other investors, the roller coaster has been a nightmare. Those who bought near the top and held on have lost a lot of money. And those who bought near the bottom and sold near the top missed out on a once-in-a-lifetime opportunity to make a fortune.

Why do people invest in GameStop, despite the risks involved?

For many investors, the appeal of GameStop is simple: it’s a way to make a quick profit. But for some, there’s more to it than that. They see GameStop as a way to stick it to the big institutions that they believe have been unfairly driving down the stock price. And they see it as a way to level the playing field between retail investors and Wall Street.

What’s next for GameStop and the stock market?

It’s impossible to say for sure what’s next for GameStop or the stock market. But one thing is certain: we’ve never seen anything like this before. And it’s likely that we’ll never see anything like it again.

Author

Comments are closed.