Apparently powered by a community on Reddit, the share of the Computer Games Handler Gamestop has known only one direction for weeks; One billion-dousy hedge fund is now difficult in a thread. Melvin Capital had set in a particularly coarse circumference on further falling courses of the crisis criterion and was caught by the strong increase in the price last cold. A billion-heavy investment should last the investor last stabilized, but it is unclear whether that’s enough. After most recently, Elon Musk had tweeted the excursions on Reddit, the course could continue to rise and Melvin in the ruin.
Reddit vs. Shortseller
The starting point has taken the dispute in the Reddit Community R / Wallstreetbets, as explained by CNN. There, users have made advertising for weeks for the share of the crisis company, on the one hand, because they hold the for undervalued, but most of all, because investors have set in coarse circumference to falling courses. With this "Short Selling" Win investors money when the courses fall like hoped. Take the shares but the opposite direction, you have a problem. The strong the increase, the gross losses and therefore it can lead to the rush on the stock, as handler want to keep their losses within limits. At Gamestop, more than 100 percent of the available shares were married, explores Bloomberg.
MEVLIN Capital is therefore in trouble because the share price of Gamestop Corporation (GME) – from about $ 18 to the middle of January has risen to last $ 147 US dollars. In the absorboric trade, there are already more than 200 US dollars. Observers ame that Melvin has already stabbed other bets on falling courses in a coarse extent to come to money, reports Reuters. Accordingly, there is apparently a connection with the youngest price increases in the German biotechnology company Evotec, the battery manufacturer Varta and the video game developer CD project (Cyberpunk 2077). With their shares, Melvin also set a loss and had to sell now.
To Gamestop AMC?
The market analyst Konstantin Oldenburger compares the Court Explosion of Gamestop with that Short Squeeze, which Volkswagen had briefly made the most valuable company in the world in 2008. In the current case, not only to reddit, private investors were involved in trade in Gamestop shares, but also known investors who already had the right riche in the US financial crisis.
At Reddit itself, the users have already chosen the next goals. So lists are shared there, which according to which AMC was undervalued. The media company operates several TV channels and many investors have also set to falling courses.