Elon Musk Tesla Chief Executive Officer. [AFP=연합뉴스]
– American ants corps beat Wall Street? ‘Gamestop’, a famous chain store that deals with video games, surged 92.7% on the New York Stock Exchange in the US on the 26th (local time), closing at $147.98 per share. At the beginning of the year, the stock was $17.25 (closed on the 4th). It has soared more than eight times in a month.
Critical Musk added to short selling
– The uptrend did not end here. Even after the regular market ended on this day, GameStop closed the over-the-counter transaction at a price ($209) that rose 41%. US CNBC broadcast said that the over-the-counter transaction prices once surged to 60% due to the influence of Tesla’s CEO Elon Musk posting on Twitter immediately after the end of the market “Gamestonk!!!”. In his tweet post, Musk also posted the address of “WallStreetBets,” a group of private investors buying GameStop. ‘Gamestong’ is interpreted as meaning’gamestop onslaught’.
![A tweet posted by Tesla CEO Elon Musk right after the closing of the New York Stock Exchange on the 26th (local time). [트위터 캡처]](https://i0.wp.com/pds.joins.com/news/component/htmlphoto_mmdata/202101/27/39c20988-7afe-45a3-86b9-4948753d3269.jpg?w=900&ssl=1)
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A tweet posted by Tesla CEO Elon Musk right after the closing of the New York Stock Exchange on the 26th (local time). [트위터 캡처]
– What happened? Summarizing foreign media reports, the skyrocketing of GameStop was led by members of’Wall Street Betz’, an investment group of Reddit, an overseas online community. Earlier, US individual investors began buying GameStop shares on the 11th, seeing the news that Ryan Cohen, co-founder of the pet shopping mall Chewy, will join GameStop’s board of directors. It is predicted that the game stop centered on offline stores will enhance online distribution and improve profitability.
But after that, news spread around Reddit that Wall Street’s short-selling forces bet on the decline of the game stop. Individual investors stepped out to buy more and more, saying, “Let’s beat the short selling forces.”
Short selling forces recorded 1 trillion losses on the 25th after a sharp fluctuation
– Neither a short sale nor the forces withdrew easily. According to S3 Partners, a financial analyst firm, it doubled its downside bets despite pressure from personal buying. Short-selling stocks bought by institutions over the past 7 days during the fierce battle between individuals and institutions amounted to $69 million (about 76.2 billion won).
![The stock price of GameStop, listed on the New York Stock Exchange, ended at $147.98 on the 26th. [인베스팅닷컴 캡처]](https://i0.wp.com/pds.joins.com/news/component/htmlphoto_mmdata/202101/27/12692a4e-e906-4be4-b83f-a833a523c554.jpg?w=900&ssl=1)
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The stock price of GameStop, listed on the New York Stock Exchange, ended at $147.98 on the 26th. [인베스팅닷컴 캡처]
– On the 25th, the stock price of GameStop continued to fluctuate as profit-taking sales poured out during the tug-of-war between individuals and institutions. The intraday high price jumped to 144.85% and the low price recorded -5.97%, and nine trade suspension measures were initiated. Eventually, the closing price ended with an 18.12% increase.
According to S3 Partners, the short selling force recorded a loss of $917 million (1.13 trillion won) a day. To date, the total loss is estimated to be 5 billion dollars (about 525 trillion won).
On the other hand, on the 26th, Reddit posted a post saying that it made 600% of the revenue from GameStop. Reddit users say, “Let’s not sell up to $1000” and are raising momentum on the current uptrend. As the’Game Stop Incident’ became known all over the world, individual Korean investors are seen exchanging opinions over the timing of purchases in overseas online communities.
Why did Musk do that? The stock price of Tesla, a company run by Musk, also suffered from short selling forces. The anecdote that Musk tweeted last year saying “selling red’short shorts'” is also famous.
The war is not over yet
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![Overseas online community Reddit's investment group Wall Streetbets. [레딧 월스트리트베츠]](https://i0.wp.com/pds.joins.com/news/component/htmlphoto_mmdata/202101/27/e53507df-1d32-4580-98d1-41914a924932.jpg?w=900&ssl=1)
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Overseas online community Reddit’s investment group Wall Streetbets. [레딧 월스트리트베츠]
– According to Bloomberg, Wall Street’s hedge fund Melvin Capital, which bet on the decline of the game stop, received an investment of 2.75 billion dollars (about 3.392 trillion won) from another hedge fund, Citadel and Point 72, on the 25th. It means that the war is not over yet.
S3 predictive analysis executive director Iho Dusanievsky said, “If the first unit falls into a rifle rain like a war, the next unit advances.” “If the short selling force that suffered a loss in the market collapses, the next short sale will come.” Forecast.
The Wall Street Journal (WSJ) said, “The company’s fundamentals and stock prices are clearly separated, and professional investors are concerned because both sides are in the market like video games. This trend will not affect the entire market.” Forecast.
Reporter Jeong Eun-hye [email protected]
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