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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