Melvin Capital, a hedge fund that bet heavily against GameStop, lost a stunning 53% of its value in January.
That in turn has driven GameStop even higher, creating even more losses for short-sellers. WallStreetBets successfully triggered an epic short squeeze, where investors that bet against GameStop have been forced to unwind their bets and buy the stock back. (GME) lost a quarter of its value Monday but it’s still up nearly 1,200% on the year. (AMC) and other stocks skyrocketing in recent days. Robinhood CEO details 3:30 am call to put up $3 billionĪ mob of traders on Reddit’s WallStreetBets page have sent GameStop (Photo by Noam Galai/Getty Images for TechCrunch) Noam Galai/Getty Images But those who will undoubtedly get the most out of “Eat the Rich” are folks who have heard about the wild meme-stock swings but were too intimidated to wade into the potential Google rabbit hole.Co-founder and co-CEO of Robinhood Vladimir Tenev speaks onstage during TechCrunch Disrupt NY 2016 at Brooklyn Cruise Terminal on in New York City. It dumbs down most of the fancy financial lingo into digestible definitions, which should endear itself to those outside the arena - much like Reddit and Robinhood did for amateur investors. “Eat the Rich: The GameStop Saga” opens with Jim Cramer of CNBC’s “Mad Money,” though it soon turns its lens to the no-name retail investors who turned a Reddit tip into a retirement fund. “Eat the Rich: The GameStop Saga” is a bit short, but also maybe the perfect length for our social media- (and video game-)shaped attention spans. It is directed by Theo Love and executive produced by Cogan, Garbus, Love, Jon Bardin, and Jack Youngelson. The docuseries is a Story Syndicate production in association with The Wall Street Journal Studios. For this one, the duo landed what they called “exclusive access to key members of Reddit’s wallstreetbets community who fueled the short burn movement.” “Eat the Rich: The GameStop Saga” is executive produced by Emmy and Academy Award-winning filmmakers Dan Cogan (“Icarus,” which won Best Documentary Feature in 2017) and Liz Garbus (her “What Happened, Miss Simone?” was nominated for - but did not win - Best Documentary Feature in 2016 it won the Emmy). Along the way, hilarity ensues - though surely not to the professionals whose portfolios got rocked.
GAMESTOP HEDGE FUND SERIES
To give you a sense of just how much money was made by the real underdogs, the amateur investor (pictured above) who is credited in the series with first posting the proposal of the GameStop play says he turned $25,000 into $8 million. The only point of contention within the three-part series is that nearly everyone sees themselves as the David. “Eat the Rich: The GameStop Saga” is being marketed as a David vs. (That trades under HOOD GameStop’s GME is around $25.)Īt the saga’s (and series’) climax, Wall Street fat cats were forced to get out of the very situation they created, taking big losses on the short sales and providing the big gains sought by the regular joes. The eventual GameStop meltdown led to the major usage declines at Robinhood, which itself is now valued below $10 per share. This was made possible - and also nearly ruined by - the emergence of trading app Robinhood. When some savvy number-crunching Redditors realized just how much money was stacked against GameStop’s continued existence, they gobbled up shares and sent the price soaring in January 2021. What was originally a wise assumption soon got out of hand. The basics of what went down online and in real life (and in the Netflix docuseries) go like this: In 2020, video-game retailer GameStop was the most-shorted company on Wall Street, as hedge-fund managers bet the heavily brick-and-mortar store selling physical media would go bankrupt in an increasingly digital world (and that goes double for the video-game industry itself). The program accomplishes both of those goals, which it delivers in a bingeable 120-minute package. It’s all good, Netflix’s three-part docuseries “ Eat the Rich: The GameStop Saga” is here to educate - and entertain - all of us. Don’t feel bad, even highly respected executive editors of business coverage are still a bit confused about the GameStop stock situation and the meme-stock industry in general.
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