Meme traders push GameStop stock to towering heights while pros look in disbelief

Meme traders push GameStop stock to towering heights while pros look in disbelief

The stock price of video game retailer GameStop is soaring, and there’s no good reason for it — if you ask the professionals. 

But a group of traders that frequent Reddit’s popular subreddit r/wallstreetbets has given these pros the finger, and they don’t plan to quit anytime soon. 

Here’s what’s happening: GameStop hasn’t been doing too great in recent years. Retail video stores are a dying business, and, typically, GameStop’s quarterly earnings results are so bad that they almost always cause the stock to plummet. This also makes it a heavily shorted stock (shorting means borrowing a company’s shares and selling them on the market with the hope you’ll be able to re-buy them cheaper later), with hedge funds like Melvin Capital making massive bets that GameStop stock price will fall.  Read more…

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