Humans love Underdogs, at least most do. We love the fact that how-so-ever limited it might be, for once the weak stood up to the strong and gave the latter a bloody nose to nurse and remember for a long time.
While this may sound pretty good a script for movies, in the world of shares, stocks and money, it can sometimes play havoc, especially when big monies (and bigger egos) go down the drain.
Something similar is the case with GameStop and its stock rating on varied platforms in the US.
For an aging ship buffeted by super-strong winds and choppy waters, GameStop was for quite a while feeling the heat of digitization of its most important of products, computer-games and electronic games. Being the leading dealer of products from the stables of Atari 2600, Nintendo, Xbox Live and PlayStation besides its own inhouse products that came to it from its myriad acquisitions, it was the numero-uno in the field till it was hit by digitization which first took away its clients who preferred procuring their products thru e-commerce sites which delivered everything from software discs to consoles and peripherals home instead of folks having to travel any distance to get these. In time, digitization only hastened its collapse with the spread of digital games which could be procured online (without the need for any physical paraphernalia) and played either on PCs or mobile phones. Pushing it further were companies including Sony whose physical consoles came with built-in digital features completely obviating the need to buy anything more.
While all this was going on, the company saw a sustained erosion of its marketcap which went as low as USD 2.00 on a 52-week low somewhere in 2019-2020. Hedge funds with deep pockets and always the favourites with those in the right positions, including Melvin Capital sold heavily with the understanding that nothing could save the company from imminent collapse in the days to come.
While this was all going on two events in particular caused its marketcaps fortunes to change drastically. One, its ex-CEO and Investor Ryn Cohen & others ended up buying 9 million shares for USD 76 mn taking the value per share to USD 8. The other were murmurs on a reddit platform that the company had “hidden” assets that could still bring about a turnaround! The “hidden” assets could be the liquid USD 480 million, and a feeling that the pandemic rocking the US economy and households could bring higher sales of games given that locked-out folks had little else to do but play games on their consoles.
Be it concerted efforts or pure luck, the reddit gang (and some deep pockets on their side of the fence) quickly lapped up large number of GameStop’s shares based on the above predictions. Buying in quick succession, the stock’s value spiralled up to USD 480.00 on 29th January 2021- a 12000% rise from a low of USD 2.00 a year back.
Overheated the stocks were despite which the markets did little to control the swing preferring trading platforms to put the brakes which they did but to no great advantage. In the end (though the end is yet to come!) the bourse’s darling with deep pockets including hedge funds like Melvin Capital lost heavily (the latter incidentally lost close to USD 5 billion) in short-buying to cover their position.
The story though far from over does show that the best and biggest (in this case, the US stock markets that boast of the world’s most sophisticated system of stock trading and investor protection) don’t really stand a chance when they are up against a decidedly dedicated bunch with the right information and intent. For once, and in a long time, the stock markets where completely outwitted, outsmarted and outfoxed by the little guys with brains! As for the hedge funds, after the carnage on the markets, the certainly don’t seem to have a hedge to hide behind.
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Mostly it’s the big guy with resources including financial and legal muscles who bulldozes his way while almost running over the poor, hapless little David.But what if the proverbial David, akin to David of mythology proves his might, and gets Goliath to do cart-wheels on the moon?
Quite similar is the case with GameStop, an American corporate entity into the business of retailing (mind you, brick and mortar thru and thru.
video game, gaming-related merchandise and consumer electronics.Till the world was all brick and mortar, GameStop was, and according to authoritative sources, it still is the largest retailer of video games with over 5500 stores dotting North America (which includes the US and Canada), countries in Europe, and down under (which includes New Zealand and Australia).
In its heydays which was as far back as a decade in the year 2011, its revenues approximated USD 10 billion which sadly fell drastically and in less than a decade in 2019 came down to USD 6.4 billion.Back in the year 1984 when it started, it came about in Dallas in Texas, US, and was called Babbage’s.
With sub-brands including EB Games, ThinkGeek, and Micromania-Zing, it lumbered along as the biggest seller till Digitization caught up.
Adding to this was the company’s failed bid to get into retailing smartphones and to an extent the pandemic.
Elon Musk endorsed the upward run of GameStop Stocks, which was highly discussed on Reddit's thread.
The billionaire just had to say one word to attract investors towards the video game retailer's stock.
It has been confusing because the majority of the players have been downloading the games instead of purchasing at the stores.
Sony has started taking preorders for its upcoming gaming console PlayStation 5.
However, Sony and its new gaming console, PlayStation 5, are once again in news headlines thanks to the quick selling of the Digital Edition of PS5 due to its massive demand in the market.According to a report on the Eurogamer website, there is a great demand for the Digital Edition of PlayStation 5 in comparison to the Standard Edition of PlayStation 5.
But despite this much demand for the Digital Edition of PS5, most big retailers don’t have enough stock of PlayStation 5 Digital Edition to meet this demand thanks to its limited production by Sony in comparison to PlayStation 5 Standard Edition.
According to them, their current stock allocation is around 75 % PS5 Standard Edition against 25% PS5 Digital Edition.According to the results of a poll which was conducted by Ars Technica for GameStop Stores (in the US market), almost nine GameStop Stores in the US market had a stock allocation around 13% or 33% PS5 Digital Edition versus 87% or 67% PS5 Standard Edition.Sony has never been in this kind of situation where it has to warn its customers that they might find it a little difficult to get their gaming console.
But that’s history now.Jim Ryan (President and CEO of Sony Interactive Entertainment) has refused to give his comments on this situation and the availability of PS5 Digital Edition in the market.
However, he has said that the company is planning to produce the necessary number of units to meet the current demand for PlayStation5 Digital Edition.
People hooked to the latest video games and gaming consoles are well versed with the name GameStop!
With a huge number of fan following, they are regularly coming up with ideas to increase their customer base.
Providing free gifts is a way to draw more customers to their stores.
2] Why Should You Participate in The Tell GameStop Survey?
This is achieved by asking customers to provide their genuine feedback.
Honest feedback and genuine answers in the customer satisfaction survey go a long way in improving the services provided by the company.
https://surveylo.com/gamestop-survey-tellgamestop/
Sony confirms it'll stop holding GameStop and alternative retailers sell PS4 transfer
It'll so forestall marketing digital transfer codes for PlayStation four games beginning Apr first, 2019.
The news, 1st circulated late last week via a leaked memorandum obtained by well-liked game deals watcher Wario64, implies that players World Health Organization.
In alternative words, shopping for you'll technically still do therefore by the approach of virtual currency.
Their area unit still some uncertainties here.
It’s not clear however massive those new denominations are going to be, as Amazon and alternative stores already sell PSN gift cards price the maximum amount as $100.
Sony confirms it'll stop holding GameStop and alternative retailers sell PS4 transfer
It'll so forestall marketing digital transfer codes for PlayStation four games beginning Apr first, 2019.
The news, 1st circulated late last week via a leaked memorandum obtained by well-liked game deals watcher Wario64, implies that players World Health Organization.
In alternative words, shopping for you'll technically still do therefore by the approach of virtual currency.
Their area unit still some uncertainties here.
It’s not clear however massive those new denominations are going to be, as Amazon and alternative stores already sell PSN gift cards price the maximum amount as $100.
