GAMESTOP and Stock Market Performance: Game Over?

GameStop is simply a company that (financially) was no longer performing well: the business model of purchasing physical video games simply no longer holds up the way it used to. Despite this, a more or less organized group, more or less imitated, of small investors decided to put their money into it. Nothing strange so far.

If it weren’t for the fact that some (major) stock market speculators had bet on a decline: yes, in the world of finance it is possible to profit by betting that a company or a state will fail! OOOOPS… These speculators took a hit, at the moment (source Sole 24 ore from today, January 31, 2021) the count could be around 40 billion Dollars. It’s hard not to feel sympathy for our small investors: by organizing themselves on digital platforms they have “moved” an amount of capital that not even the most important Hedge Funds have managed to counter.

Some argue that perhaps one of these Hedge Funds disguised as an “influencer” may have incited this horde of small investors to lose a lot of money and profit even more in turn. Of course, anything is possible. The fact remains that even an investor of this caliber ( Dan Sundheim’s D1 Capital Partners ) is losing a hefty 20%!!!