Reader’s Guide: Everything You Need to Know About the GameStop Frenzy

It was like a hurricane. Amateur investors, targeting stocks like GameStop that the pros had written off as dead, bid up shares in a growing number of companies. It was a battle of big versus small, Wall Street versus Main Street, the Robinhood army versus the hedge funds.

The drama had caught the attention of the Securities and Exchange Commission, Alexandria Ocasio-Cortez and Ted Cruz and elected attorneys general in Texas and New York. It was bigger than the markets.

Catch up with our coverage here:

What Is GameStop, the Company, Really Worth? Does It Matter? The frenzy for the troubled retailer’s stock has been a headscratcher for the analysts who try to determine a company’s value.

Robinhood, Under the Gun, Raises $2.4 Billion: The high volume of trading by its customers, many of them egged on by social media, has put a strain on the company’s balance sheet.

Silver Rises With Hype It’s the Next GameStop, but a Backlash Mutes Gains: The precious metal jumped 11.5 percent to its highest level in eight years, then gave up some of its gains as some online investors smelled a trap.

Gensler Faces Big Challenge in Tackling GameStop’s Wild Ride: There is broad agreement that the capital markets have been distorted but less consensus on what, if anything, the S.E.C. should do about it.

GameStop vs. Wall Street

Let Us Help You Understand

    • Shares in GameStop, the video game retailer, have soared because amateur investors, starting on Reddit, have bet heavily on shares of the company.
    • The wave gained momentum in response to large hedge funds short selling GameStop stock — basically they were betting against the company’s success.
    • The sudden demand has driven up the share price from less than $20 in December to around $300 on Monday. On paper, anyway.
    • It’s not just GameStop. Amateur investors have backed other companies that many big investors had shunned, such as AMC and BlackBerry.
    • This bubble around GameStop forced big investors to raise money to cover their losses, or dump shares of other companies.

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