It has definitely been exciting to see the GameStop saga play out. But as much as this may feel like a victory for the little man, let’s not forget that as the drama unfolded, a lot of ordinary individuals have lost money in teaching a few megarich hedge funders a lesson. For the rest of us, here are 3 important Lessons.
1. Nothing changed about Gamestop’s Value
On GameStop’s meteoric growth, some merchants were able to make enormous profits. Yet amid all the insane price fluctuations, almost nothing about the actual worth of the stock has improved. It continues to deal with the transition to digital gaming and remains heavily in debt.
Share values can rise and fall as you purchase stock in a stable business. But it won’t be possible for short-sellers and Reddit users to drive.