The price of video game distributor GameStop, the parent company of Micromania, has experienced a stratospheric rise since the start of the year, up more than 1,630%. Legions of individuals bought the stock, taking the hedge funds that speculated on its downfall from the back. The “short-sellers” would have lost up to $ 6 billion. On the Reddit forum, stock marketers are jubilant.
« Against nature, completely crazy and dangerous “. Michael Burry, one of the star managers behind the “Big Short”, a juicy bet on the subprime crisis, does not mince words to qualify the GameStop phenomenon. The American video game distribution brand, weakened in recent years by the dematerialization of the industry and competition from e-commerce, has recently experienced a spectacular resurgence of interest in the stock market.
Its valuation, which fell below $ 200 million in early March, now exceeds $ 10 billion. The price of the parent company of Micromania soared from more than 1,630% in January to more than 300 dollars a share, including a rise of 92% on Tuesday alone. On Wednesday, it won even more than 100% at the time of the closing in Europe. A disaster for the many hedge funds who bet on its fall.