Investors give hedge funds the finger as GameStop’s share price gains

January 28, 2021

Shares of GameStop’s stock have risen over 1,700 percent. The why behind this amazing jump is that individual investors, who shared a Reddit group in common, set out to put a financial hurting on two hedge funds that were shorting the video game retailer’s stock to reap financial gains from a lower trading price. The result of this retribution has been losses for institutional investors counting on GameStop underperforming, but at the same time leaving the company wildly overvalued with investors holding expensive shares that are realistically only worth a fraction of the price they paid for them.

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