GameStop was the talk of the town a year ago. Redditors became paper millionaires, hedge funds lost billions of dollars, and many people wondered if the financial world was on the verge of a revolution after the video game retailer’s shares soared to stratospheric heights.
That revolution was never to come to fruition, however. While Wall Street’s ebb and flow continue to be controlled by investment firms, they are more aware than ever of the costs that come with many people betting against them.
That’s not to say that the GameStop phenomenon wasn’t helped along by people’s desire to take a shot at the establishment, as demonstrated by the subreddit called WallStreetBets and the low-cost trading app Robinhood that was used by thousands of people. GameStop’s share price rose despite hedge funds’ expectations that it would fall, allowing them to enrich themselves at the expense of Wall Street and raising concerns.
A “short squeeze” is a term for this phenomenon. And it was a huge success. During the first half of January 2021, GameStop’s stock price rose steadily, but on the 28th, it soared to a record high of $483, setting a new high for the company. GameStop’s stock price was $19 at the beginning of the year.
While the stock price of GameStop fluctuated wildly, the rollercoaster ride that saw Robinhood controversially shut down trading seemed to shake up the status quo permanently.
The stock price of GameStop has been swinging since January 2021. Financial experts estimate the company is worth more than its current share price of $98.50 as of Friday’s closing bell.
After the significant change, GameStop has hired a former Amazon executive as CEO. In June, Matt Furlong was named president and CEO. George Sherman, the former CEO of GameStop, announced his resignation after receiving an estimated $170 million from the sale of his shares.
For digital assets or works of art, blockchain-created non-fungible tokens prove that the support or work is genuine. Tokens issued by individuals and organizations, including artists, celebrities, businesses, and athletes, are the latest craze in the cryptocurrency world. GameStop revealed earlier this month that it had been working on an NFT market, but it has yet to open. This has resulted in some significant sums of money changing hands.