How the GameStop Uproar Could Change Markets Forever
In this episode, Shamus Madan delves into the GameStop stock surge saga, discussing Ryan Cohen's impact and his role in the board of directors. He also explains stock shorting, its risks, and how Reddit influenced the stock's rise. The episode concludes with a discussion on the future of investing and the importance of investor education.
Key Points
- GameStop's stock surge was fueled by a combination of individual investors on Reddit, the significant short interest in the stock, and key investments and strategic moves by the company, such as Ryan Cohen's involvement and a partnership with Microsoft.
- The GameStop phenomenon highlighted the impact of commission-free trading platforms like Robinhood, which democratized investing and allowed retail investors to challenge institutional investors' dominance in the market.
- The episode underscores the importance of investor education to mitigate market volatility and potential financial losses, especially in light of the newfound influence of collective retail investor actions.
Hello Everyone and welcome to MBIT, I am your host Shamus Madan, and today we will be walking through what caused Gamestop’s stock to surge and how it could change the future of investing.
Topic: The Significance Behind the Gamestop Craze
Sources:
Clement, J. “U.S. Computer and Video Game Sales - Digital vs. Physical 2017.” Statista, 29 Jan. 2021, www.statista.com/statistics/190225/digital-and-physical-game-sales-in-the-us-since-2009/
“GameStop Announces Multi-Year Strategic Partnership with Microsoft.” Gamestop Corp., news.gamestop.com/news-releases/news-release-details/gamestop-announces-multi-year-strategic-partnership-microsoft
Inc., GameStop. “GameStop Announces Additional Board Refreshment to Accelerate Transformation.” GlobeNewswire News Room, "GlobeNewswire,” 11 Jan. 2021, www.globenewswire.com/news-release/2021/01/11/2156168/0/en/GameStop-Announces-Additional-Board-Refreshment-to-Accelerate-Transformation.html.
Disclaimer: The MBIT podcast is reflecting the opinion of only the host. The podcast is for informational purposes only. The podcast is not a research report and is not a recommendation to purchase or sell any stocks, holdings or securities. The podcast is also not meant to serve as the basis of any investment decision.
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Transcript
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