Wednesday February 24, 2021
Reddit users don't know about anything
Gamestop increases by over 100 percent
Gamestop stocks are going through the roof – again. What attracts the gamblers is unclear, possibly it is the announced withdrawal of CFO Jim Bell.
The excitement surrounding the ailing video game retailer Gamestop never ends on the US financial market. The company's shares were temporarily suspended from trading Wednesday, closing at nearly $ 92 percent, up 104 percent. In the aftermath of the trading day, it went up by a further 70 percent at times.
The day before, Gamestop had announced the departure of CFO Jim Bell, without giving a reason. US media later reported that the manager had to resign under pressure from influential investors because there had been disagreements about the company's future strategy. Bell has his retirement silvered with a generous settlement of $ 2.8 million, in addition, he receives a block of shares of $ 13 million.
Gamestop has actually been in crisis for a long time, but driven by hobby investors organized on the Internet, the company's shares had rallied breathtakingly last month. That in turn broke billions in losses for some hedge funds that had bet on a price decline. At the end of January, the stock had hit a record high of over $ 483, but the soaring was quickly over. The users of the Reddit forum, from which the concerted purchases recently started, were surprised at the recent price rush.
Buffets vice warns of a crash
The price turbulence around Gamestop and some other companies on the US stock exchanges already had consequences. US authorities are investigating the incidents and investigating possible market manipulation. At the congressional hearing just over a week ago, high-ranking hedge fund managers defended their business models and denied unfair practices.
Meanwhile, the deputy boss of star investor Warren Buffett's investment company Berkshire Hathaway, Charlie Munger, is concerned about the recent turmoil in the US financial market. The capers, for example with the Gamestop shares, are signs of an "irritating bubble" that has to come to a bad end at some point, said the 97-year-old at the annual general meeting of the US media group Daily Journal Corporation. The frenzy of speculation reveals a dangerous new culture in which people would be encouraged by cheap brokers like Robinhood to gamble with stocks like horse betting.
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