The internet and stock market are aflame over GameStop, the video game retailer whose stock is suddenly the darling of day traders who are putting the squeeze on Wall Street's big players.
A GameStop store in Manhattan on Wednesday, Jan. 27, 2021. GameStop shares have soared 1,500 percent as millions of small investors, egged on by social media, employ a classic Wall Street tactic to put the squeeze — on Wall Street.
Image: Hiroko Masuike/The New York Times
The internet and stock market are aflame over GameStop, the video game retailer whose stock is suddenly the darling of day traders who are putting the squeeze on Wall Street’s big players.
The stakes are enormous: The surge in trading drove GameStop’s value up by more than $10 billion on Wednesday alone. On Thursday, as several trading platforms placed restrictions on the stock, the shares slid 44%.
GameStop — that feature of malls and shopping centers across the country — was worth about $2 billion in December. By Wednesday it was worth $24 billion, roughly the same as meat giant Tyson and fuel refiner Valero Energy. On paper, at least.
Exactly why has to do with a mix of traditional investing, rampant enthusiasm, stock-market mechanics and the belief that anyone with a Robinhood account can meme a fortune into existence.
What’s going on?
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