Let Them Eat $GME… or Not! — Zivolve

Why Is This Happening?

One reason why some traders are investing in GameStop is due to the company being undervalued as video games have become an important pastime to get through the COVID-19 pandemic. Granted, those who are shorting GameStop (the Hedge Funders) believe the company struggling to get sales as gamers are not coming to stores/malls often due to the pandemic.

So What? Why Does It Matter?

How will this be looked back upon in retrospect? From what we are seeing, this event may show a change in power. It has been said that the wealth of Millennials and Gen Z will go up in the future, this may be a major step for them in reaching that goal. For them, this is a chance to pay off those student loans, buy a house, and realize financial security. Hedge Funders are trying to fight back but are currently on the losing side. Some describe the event as a battle between the old and the new.

References

Kharif, O. (2021, January 27). What’s the $23 Billion GameStop Really Worth? Maybe $2 Billion. Retrieved January 29, 2021, from https://www.bloomberg.com/news/articles/2021-01-27/what-s-the-23-billion-gamestop-really-worth-maybe-2-billion

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Zivolve

Zivolve

An A.I. Trading and investments assistant application aims to empower individuals to be in charge of their trades and investment portfolio in a hands-on fashion