How GameStop Became One of the Year’s Hottest Stocks.
At the onset of the pandemic, GameStop was one of the hardest-hit retailers, already suffering from the shift to online sales.
Just last April, the company’s shares could be purchased for $3.25 each, but by close on Tuesday, they were valued at $148 a pop.
The stock's value began to rise when Ryan Cohen, founder of Chewy, began lobbying for the company to establish itself as a rival to Amazon.
Wall Street viewed this as an opportunity to short the stock, which involves selling shares with the intention of buying them back after prices fall.
Small investors saw the opposite and began buying up cheap stock, which caused a 300% increase in GameStop’s gains in the last year.
Analysts remain unsure how the saga will play out, but they think that both sides will face consequences