Reddit investors are raising the GameStop share

GameStop is expected to lose money this year and next. Sales growth is slow as fewer players have to go to stores – or even shop online – when they can download new titles directly from consoles, computers, phones or tablets. So why have video game store shares rose more than 275% in 2021? The company would like to thank a loyal group of Reddit investors for the fact that many others on Wall Street who continue to support the shares are overvalued and due to the sharp decline. Stocks were very volatile on Monday, and stopped several times. Shares more than doubled in one point and ended the day 18% higher. The WallStreetBets underrated posters are being attacked by the company. This seems to have helped the so-called GameStop (GME) short stock tightening. A large number of investors have opted against GameStop in the hope of recently borrowing and selling shares, then buying the stock at a lower price and pocketing the difference. That’s a risky strategy: if a stock suddenly rises, short sellers will have to run en masse to risk buying shares or losing T-shirts. The shorter the stock rises, the greater the losses if the short seller does not repurchase (or cover) its position. This creates stress. #CNN # News #ChristineRomans.

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