GameStop timeline: A closer look at the saga that upended Wall Street
The decline in stock comes as the company, under the guidance of CEO Ryan Cohen, works on implementing cost-cutting strategies and refocusing its operations. Shares of GameStop (GME) were up 0.75% in afternoon trading on Thursday to cut into the six-week drop of more than 20%. “GameStop has decided to wind down our NFT marketplace due to the continuing regulatory uncertainty of the crypto space,” a post on its website reads.
“So it started out as kind of a little bit of a value investing story,” he added. “But then this sort of technical phenomenon, which is called a short squeeze, that was really sort the dynamite that was thrown on the kindling.” As the shares slowly edged up, these short sellers loomed large. Still, the company reported an operating loss of $63 million in the third quarter. GameStop shares plunged nearly 20% the next day, closing on Dec. 9 at $13.66 a share. If the stock stays far above last year’s levels, Wall Street analysts might well find reasons to raise their target for the stock price, even if the company’s business does not materially improve.
- But, as with so many retail stars, GameStop began to struggle a decade or so ago as gamers, like everybody else, made more of their purchases on the internet, opting for downloaded games or two-day delivery over a visit to the mall.
- Grube was the formerly the chief financial officer at Chewy, among other executive roles in the e-commerce space.
- At the same time, peripheral activities have seen reduced expenditures, reflecting a commitment to profitability and revitalizing the company’s core offerings.
- The sort of thing you’d find between a doughnut shop and a makeup retailer in an American mall.
“In this sort of Wall Street bets culture, people take screenshots of how much money they’ve made or lost to kind of show off,” he said. “And as they sort of advertised that, people started piling into the trade and the momentum built.” Gill also posted screenshots of his GameStop portfolio on r/wallstreetbets as far back as 2019. Gill and other members of the forum also cited the bullish GameStop stance of Michael Burry, the legendary trader who was portrayed by Christian Bale in the 2015 film “The Big Short,” as fuel for their investment choices.
GameStop’s stock price peaked in January 2021 at $483 per share, costing some hedge funds billions and huge gains for retail traders. I don’t think many people are going to walk away from Dumb Money eager to download an investing app and start playing the markets. (Plenty of people have already been doing that anyway.) But the level of triumphalism in the movie is a lot. Regular people playing the stock market is fine if that’s what they want to do, but to play the Wall Street game isn’t to overthrow it. Most retail investors are in it to try to make money, not remake the system, and most don’t even do that.
Heater price: Check out top 10 options with details on how much they cost
By press time, GameStop stock was trading at $14.51, showing minimal gains of about 1.5% within the last 24 hours. Former CFO Diana Saadeh-Jajeh — who described herself as a “decision maker for key business strategies including NFT, digital wallet, and crypto initiatives” at GameStop — also resigned in August 2022. It’s true that at this time, Gill exercised GameStop call options that otherwise would have expired and bought additional shares, bringing his total share count to 200,000. At the end of “Dumb Money,” Gill considers selling his stock but he buys more instead. It’s also implied that he may have sold some stock since his brother, Keith (Pete Davidson), is shown being gifted a brand-new sports car. He also testified that he didn’t “solicit anyone to buy or sell” GameStop stock for his own profit.
GameStop shares would go from trading at around $43 (already significantly more than it traded at at the beginning of the year) to as much as $380, becoming one of the most traded stocks on the market along the way. There’s also Robinhood, the app that is the unofficial stock trading platform of choice for WSB. It lets people trade stocks and even more exotic investments, like options, for little or no charge. From how Animal Crossing taught gamers how to pick stocks to the https://forex-review.net/ beach bum who made millions betting on the short squeeze happening to what a short squeeze is, The Ringer has the GameStop stock saga covered from all angles. These funds have historically been able to shift the price of a stock for their own benefit, whether that is the “pump and dump” (inflating a stock price just to sell it immediately after), or by openly and heavily shorting it. A short squeeze happens when a stock price that was expected to fall, instead rises.
GME Estimated and Actual Revenue by Quarter
“It’s long past time for the SEC and other financial regulators to wake up and do their jobs — and with a new administration and Democrats running Congress, I intend to make sure they do.” But this does look set to change the game of short selling forever, and that will have huge ripple effects. The power of retail traders now seems higher than ever, and social media has been shown to be a remarkably effective method of stock market hype. Essentially, on the stock market, you can bet on a share price falling rather than rising, by “borrowing” shares and selling them at the current price, with the obligation to buy them at a later date, at whatever price they have then reached. GameStop, before the frenzy, was one of the most shorted shares on the US market, as a range of funds bet that it would slump during the pandemic. As the tug-of-war between the everyday investors and hedge funds heated up and support grew for GameStop on r/wallstreetbets, the stock skyrocketed more than 50% in the trading session on Jan. 22.
Tesla, for example, would need 1,600 years of profits to justify its current price-to-earnings ratio, according to a calculation this month. Amateur investors on WSB have discussed GameStop (which they refer to by its stock ticker abbreviation, GME) for years, but things changed early this year. As the price of the shares rose, more WSB posters jumped on board.
GameStop (GME) Earnings Date, Estimates & Call Transcripts
Cohen’s turnaround plan hasn’t really materialized, and the company has gone through multiple leadership changes. In translating much of the mood of the GameStop saga — which you can brush up on here — Dumb Money succeeds. It was genuinely wild to see the declining mall retailer’s stock price shoot up seemingly out of nowhere — and even weirder to find out it was because a bunch of guys on Reddit willed it so. It was fun to watch the hand-wringing among Wall Street titans and talking heads on CNBC, wagging their fingers that this was all very irresponsible. Not to mention that this all happened as the country entered into year two of the Covid-19 pandemic, when the existential question of each day was when will everything stop sucking, if ever.
GME Earnings Date and Information
As reported by Decrypt, the marketplace will be shut down due to what GameStop described as NFT and cryptocurrency “uncertainty”. The closure seemed inevitable after the retailer shut down its crypto wallet in August 2023. A month later, the Securities and Exchange Commission decided no market manipulation occurred with the trading of GameStop or any other meme stocks. GameStop has not formally confirmed its next earnings publication date, but the company’s estimated earnings date is Tuesday, March 19th, 2024 based off prior year’s report dates.
The Texas-based company dived into crypto in January of 2022 when it created a NFT division with a staff of 20 people. However, the NFT marketplace got off to a slow start and was pared back in less than a year. In general, the non-fungible token market has seen a substantial decline from its peak, with monthly trading activities down more than 97% from the NFT high point, according to Cryptopolitan. GameStop’s expansion into crypto began in January 2022 when it hired upwards of 20 staff members to run an NFT division. The company, most known for its retail stores in the U.S., is regularly seeking new business ventures after struggling in the physical gaming space in recent years.
And some skeptics point to the situation around GameStop and other companies as evidence that the stock market has reached a dangerous level of enthusiasm and speculation. For one thing, the volume of trading has strained the computer infrastructure of online brokerages, including TD Ameritrade, which said Wednesday that its mobile app was handling unprecedented volumes. Here’s a guide to understanding why and what the frenzy means for the stock market. When investors get valuations wrong, “capital goes to less productive companies at the expense of companies that would have used it better,” said Eric Gordon, a professor at the University of Michigan’s Ross School of Business.
The company was among the top five most traded stocks in Stockale, a platform for Indian retailers to trade in US equities, reported Bloomberg. It’s not hard to see why the company’s stock was unloved for so long and was a target for short sellers, who make money when stocks decline. If GameStop stock falls back to earth, as often happens when speculators move on, investors will have to go back to the sober work of figuring velocity trade out what the company is really worth, an exercise that has bearing beyond Wall Street. The tens of thousands of people who work for GameStop will be eager to know if their employer can survive, let alone thrive, as malls are hollowed out and many brick-and-mortar retailers go out of business. GameStop was one of the companies that loads of hedge funds (companies who do these bets) had bet on to lose a lot of value.
Vanderbilt professor White told ABC News that this “David versus Goliath” saga “reflects a lot in our society” amid a pandemic that has exacerbated income inequality. After a drama-filled week that gripped the nation, the entertainment industry outlet Deadline reported that the saga was already being turned into a movie that was being produced by Tyler and Cameron Winklevoss (of “The Social Network” fame). Left of Citron Research made the announcement in a YouTube video, saying Citron Capital let go of the majority of their bets that GameStop stock would fall and took a “100%” loss in doing so. “We are excited to bring our customer-obsessed mindset and technology experience to GameStop and its strategic assets,” Cohen said in a statement at the time. In the same earnings report, however, the company highlighted a bright spot that e-commerce sales had spiked considerably — increasing some 257% year-over-year. GameStop may be an extreme example of market exuberance, but it is hardly alone in defying expectations.
Dumb Money culminates in a sense of triumph for the Davids over the Goliaths. Most of the individual investors portrayed are shown as having made money. The amount Gill made isn’t clear, though we see he’s bought his brother a new car, an indication he came out ahead. The real-life Gill didn’t participate in the film or in the book it’s based on, Ben Mezrich’s The Antisocial Network. The movie divides its cast pretty neatly among Davids and Goliaths.