Did people who invested in GameStop lose money?
Some big names lost money on GameStop, but others made a bundle. The same goes for everyday investors — some won, some lost, and plenty were just in it for the casino-like ride. Wall Street is paying more attention to individual investors than it used to, but they're not keeping CEOs up at night, either.
At the height of the GameStop surge, Gill's stock was valued at $48 million. Gill retreated from public life in 2021, with no indication of what he's doing now.
Dumb Money does not entirely shy away from showing those losses; along with Gill, the film follows a handful of fictionalized GameStop investors, including Jennifer, a nurse played by America Ferrara, who becomes obsessed with Gill and GameStop stock, buys in big, and ends up losing money after failing to sell at the ...
GameStop posted revenue of $1.79 billion for the fourth quarter, compared with $2.23 billion in the same quarter a year earlier.
The surge in GameStop shares was backed by strong options activity. Some 230,000 GameStop options contracts traded by 11:38 a.m. (1638 GMT) with the bulk in call options, typically bought to bet on shares climbing higher.
Some big names lost money on GameStop, but others made a bundle. The same goes for everyday investors — some won, some lost, and plenty were just in it for the casino-like ride.
Major Hedge Funds Affected: Among the hedge funds that faced significant losses due to their positions against GameStop: Melvin Capital: Experienced a 49% loss in its investments in the early months of 2021 and required a $3 billion bailout.
While the exact details of Gill's net worth are uncertain, he confirmed that his all-time high value in GameStop was nearly $48 million, and his current net worth, as depicted in the movie Dumb Money, is $34 million.
Although most of the story is factually correct, not everything happened exactly as shown. For example, some of the people who followed Keith Gill's trade, such as the character Jenny, are mere representations of the type of people who participated in the GameStop mania.
By the end of Dumb Money, Jenny Campbell is depicted as still holding onto her initial investment but still being in financial debt. It appears that the incredible financial gains she might have made selling at one point are no longer realistic figures.
How much is GameStop in debt?
Total debt on the balance sheet as of October 2023 : $0.61 B
According to GameStop 's latest financial reports the company's total debt is $0.61 B. A company's total debt is the sum of all current and non-current debts.
Shares of video game retailer GameStop (NYSE:GME) fell 19.9% in the pre-market session after the company reported fourth-quarter results with revenue unfortunately falling short of analysts' expectations, driven by significant underperformance in its software segment ($465m of revenue vs. estimates of $670m).
What Is GameStop's Debt Position? Video game retailer GameStop (GME) currently has very low debt compared to its assets. GameStop's total debt is about $575 million, of which $378 million is long-term debt.
Although short squeezes may occur naturally in the stock market the U.S. Securities and Exchange Commission (SEC) states that abusing short sale practices is illegal.
Pump and dump trading is illegal and can lead to heavy financial penalties being imposed on those found to have been involved in it. But the rise in popularity of cryptocurrencies has led to the sector attracting a large number of pump and dump schemes.
Whether the exact events that happened during the GameStop phenomenon could ever be replicated is highly unlikely, most experts say. "The short answer is no.
mong these lucky few million-dollar winners is 27-year-old Kevin Sanzone, a purchasing manager for a Connecticut-based replacement-auto-parts retailer. He'd read about GameStop on WallStreeBets when the forum initially took an interest in the stock last fall and began to buy up shares in November.
At its height, on January 28, the short squeeze caused the retailer's stock price to reach a pre-market value of over US$500 per share ($125 split-adjusted), nearly 30 times the $17.25 valuation at the beginning of the month.
The analysis of some long investors was that GameStop was undervalued and salvageable, and that it would eventually be bought and reorganized. The initial run‐up in GME's price may have been due to forced exits from short positions and long positioning by professional investors.
June 13 (Reuters) - Ryan Cohen has bought GameStop (GME. N) , opens new tab stock worth $10 million, a securities filing showed on Tuesday, in a sign that the activist investor was trying to boost shareholder morale after the company lost its fifth CEO in five years last week.
Who owns the largest share of GameStop?
GameStop's institutional investors. Furthermore, around 12.3% of GameStop's outstanding shares are owned by individuals and insiders. Notably, the company's CEO, Ryan Cohen, owns 12.1% of GameStop's outstanding shares through his holding company, RC Ventures LLC, making him the company's largest shareholder.
The film ends with Gill's followers being able to make life choices that allow them to catch a financial breath. Plus, Keith gifts his brother Kevin (Pete Davidson) a car, so he can continue his gigs as an essential worker.
I much prefer the latter,” he concluded, drawing attention to his own $0 salary. Cohen takes over as CEO of GameStop three months after the company fired its then-CEO Matthew Furlong. The video game retailer is today worth $5 billion, according to Business Insider.
Chewy Inc (NYSE: CHWY) co-founder Ryan Cohen took a 10% stake in GameStop back in August. At the time, that investment cost him $75 million, but it was worth as much as $1.3 billion this week. Michigan billionaire and founder of subprime auto lender Credit Acceptance Corp.
In early 2021, ordinary retail investors mounted an assault against Wall Street hedge funds. Mobilizing on Reddit and relying on user-friendly trading apps like Robinhood, amateur investors sparked a short squeeze in the market for video game retailer GameStop's GME -2.7% stock.
References
- https://www.quora.com/How-do-reverse-stock-splits-cause-short-squeezes
- https://www.investopedia.com/investing/selling-a-losing-stock/
- https://www.nar.realtor/short-sales-foreclosures
- https://corporatefinanceinstitute.com/resources/career-map/sell-side/capital-markets/short-squeeze/
- https://www.businessinsider.com/how-warren-buffett-spends-money-net-worth
- https://www.investopedia.com/ask/answers/05/shortexceed50.asp
- https://www.investopedia.com/ask/answers/06/shortedstock.asp
- https://www.finra.org/investors/insights/short-interest
- https://www.superlawyers.com/resources/real-estate/california/should-i-consider-a-short-sale/
- https://www.investopedia.com/terms/s/short.asp
- https://www.investing.com/academy/trading/warren-buffett-investment-strategy-rules-fortune/
- https://www.marketwatch.com/tools/screener/short-interest
- https://finance.yahoo.com/screener/predefined/most_shorted_stocks/
- https://www.mashvisor.com/blog/can-you-negotiate-a-short-sale-price/
- https://www.investopedia.com/terms/s/shortselling.asp
- https://www.capitaltopics.com/blogue/is-100-stocks-really-the-best-option-for-your-portfolio
- https://www.cnbc.com/berkshire-hathaway-portfolio/
- https://collider.com/dumb-money-ending-explained/
- https://www.moneylion.com/learn/can-you-lose-money-in-stocks/
- https://finance.yahoo.com/news/why-gamestop-gme-shares-trading-162132483.html
- https://reason.com/2023/09/22/dumb-money-misses-the-point-about-its-meme-stock-underdogs/
- https://www.warriortrading.com/short-squeeze-definition/
- https://money.usnews.com/investing/articles/the-rule-of-72
- https://www.morningstar.com/stocks/how-invest-like-warren-buffett
- https://screenrant.com/dumb-money-jenny-campbell-america-ferrera-character-inspiration/
- https://www.timothysykes.com/blog/can-you-owe-money-in-stocks/
- https://www.investopedia.com/articles/basics/03/060603.asp
- https://www.kiplinger.com/investing/602165/what-exactly-is-a-short-squeeze
- https://www.ig.com/en/trading-strategies/what-were-the-biggest-short-squeezes-in-history--210507
- https://www.morningstar.ca/ca/news/234575/what-happens-if-a-companys-stock-falls-to-zero.aspx
- https://www.investopedia.com/terms/s/shortsqueeze.asp
- https://www.afrugaldoctor.com/home/market-zero
- https://www.disnat.com/en/learning/trading-basics/short-selling/what-is-short-selling
- https://apnews.com/article/warren-buffett-berkshire-hathaway-profit-earnings-24f65f1d2df9bf734d7faefce7ee85e3
- https://www.investopedia.com/ask/answers/06/shortselling.asp
- https://www.nerdwallet.com/article/investing/shorting-a-stock
- https://public.com/learn/what-is-a-short-squeeze
- https://www.cnbc.com/2024/03/26/gamestop-cuts-jobs-quarterly-revenue-falls-.html
- https://screenrant.com/dumb-money-keith-gill-net-worth-gamestop-stocks/
- https://smartasset.com/taxes/capital-loss-tax-deduction
- https://www.cato.org/cato-journal/fall-2021/gamestop-episode-what-happened-what-does-it-mean
- https://www.investopedia.com/ask/answers/012915/how-long-can-trader-keep-short-position.asp
- https://support.fyers.in/portal/en/kb/articles/what-penalties-does-a-seller-face-for-short-delivery-of-shares
- https://www.rahmanravelli.co.uk/expertise/cryptocurrency/articles/what-is-pump-and-dump-crypto-trading-/
- https://www.linkedin.com/pulse/how-much-did-hedge-funds-lose-gamestop-toby-mathis-euymc
- https://www.livemint.com/money/personal-finance/what-is-the-100-age-rule-of-asset-allocation-mintgenie-explains-11704719222344.html
- https://www.investopedia.com/articles/personal-finance/121815/buffetts-9010-asset-allocation-sound.asp
- https://www.sofi.com/learn/content/what-happens-if-stock-goes-to-zero/
- https://finance.yahoo.com/news/gamestop-winners-ryan-cohen-roaring-222523330.html
- https://groww.in/blog/what-happens-when-a-stock-is-delisted
- https://smartasset.com/retirement/what-is-the-120-age-investment-rule
- https://www.wallstreetmojo.com/rule-of-69/
- https://fortune.com/2024/02/15/warren-buffett-michael-burry-streaming-war-share-sell-purchase/
- https://www.investopedia.com/ask/answers/12/how-long-short-sell.asp
- https://investorplace.com/2024/02/even-amc-stocks-die-hard-investors-are-losing-interest-as-challenges-persist/
- https://www.marketwatch.com/picks/this-is-warren-buffetts-first-rule-about-investing-heres-what-to-do-if-your-financial-adviser-breaks-that-rule-01635799738
- https://www.schwab.com/learn/story/ins-and-outs-short-selling
- https://www.reuters.com/markets/us/gamestop-shares-climb-strong-volume-2023-11-29/
- https://www.thestreet.com/memestocks/gme/gamestop-stock-ownership-retail-investors-still-own-the-float
- https://www.investopedia.com/terms/s/sellagainstthebox.asp
- https://www.barrons.com/articles/short-sell-stocks-list-d0dfc3ae
- https://www.investopedia.com/terms/s/shortsalerule.asp
- https://www.thestreet.com/dictionary/short-interest
- https://www.vox.com/money/2023/9/15/23873474/dumb-money-gamestop-stock-keith-gill-melvin-capital-review
- https://www.forbes.com/sites/abrambrown/2021/02/12/the-new-gamestop-millionaires-meet-the-amateur-traders-who-won-investings-craziest-sweepstakes-ever/
- https://www.investopedia.com/ask/answers/how-does-one-make-money-short-selling/
- https://www.investopedia.com/terms/s/shortsale.asp
- https://www.newsweek.com/wall-street-gamestop-dumb-money-stocks-1830974
- https://www.investopedia.com/articles/personal-finance/100515/heres-how-deduct-your-stock-losses-your-tax-bill.asp
- https://www.moneycontrol.com/news/trends/gamestop-ceo-ryan-cohen-will-get-zero-salary-his-email-to-staff-11449581.html
- https://www.usatoday.com/money/blueprint/investing/warren-buffett-berkshire-hathaway-portfolio/
- https://www.investopedia.com/keith-gill-roaring-kitty-8303143
- https://www.thestreet.com/memestocks/gme/what-gamestops-gme-debt-position-says-about-the-company
- https://en.wikipedia.org/wiki/GameStop_short_squeeze
- https://www.5paisa.com/stock-market-guide/stock-share-market/long-and-short-positions
- https://www.investopedia.com/ask/answers/021615/does-warren-buffett-invest-gold-why-or-why-not.asp
- https://tradingqna.com/t/rule-on-short-selling/158637
- https://money.stackexchange.com/questions/126685/can-a-single-share-of-stock-be-shorted-multiple-times
- https://www.bankrate.com/investing/short-selling-how-to-short-a-stock/
- https://www.quora.com/Can-a-single-share-of-stock-be-shorted-multiple-times
- https://www.thebalancemoney.com/the-basics-of-shorting-stock-356327
- https://www.quora.com/I-want-to-earn-1-000-USD-every-month-from-dividends-How-much-do-I-have-to-invest-and-where
- https://www.investopedia.com/terms/s/shortinterest.asp
- https://companiesmarketcap.com/gamestop/total-debt/
- https://www.forbes.com/sites/jamesbroughel/2023/10/19/gamestopped-how-a-meme-stock-controversy-led-the-sec-astray/
- https://www.tradingsim.com/blog/short-squeeze
- https://www.fool.com/investing/stock-market/types-of-stocks/safe-stocks/
- https://www.investopedia.com/ask/answers/011315/what-kinds-restrictions-does-sec-put-short-selling.asp
- https://www.investopedia.com/terms/u/uptickrule.asp
- https://www.reuters.com/technology/ryan-cohen-scoops-up-gamestop-stock-worth-10-mln-shares-rise-2023-06-13/
- https://www.businessinsider.com/personal-finance/what-is-short-selling
- https://www.sharebuilder401k.com/blog/how-the-rule-of-72-helps-you-understand-how-your-savings-can-grow/
- https://admiralmarkets.com/education/articles/shares/the-best-performing-stocks-in-history
- https://www.nasdaq.com/articles/warren-buffett-is-sitting-on-a-record-%24167.6-billion-cash-pile.-here-are-10-stocks
- https://www.bankrate.com/investing/schedule-d-reporting-your-capital-gains-or-losses/
- https://www.investopedia.com/articles/stocks/08/short-squeeze-profits.asp
- https://blogs.cfainstitute.org/investor/2023/01/06/short-squeezes-a-four-factor-model/
- https://modelthinkers.com/mental-model/buffetts-two-lists
- https://www.newtraderu.com/2024/01/09/current-warren-buffett-car-2024-what-car-does-this-billionaire-own/
- https://www.composer.trade/learn/what-is-a-90-10-portfolio-strategy
- https://www.schneiderdowns.com/our-thoughts-on/dumb-money-an-honest-review-of-the-film
- https://www.investopedia.com/ask/answers/maintain-short-position-delisted-stock/
- https://www.hgtv.com/lifestyle/real-estate/new-short-sale-rules-what-you-need-to-know
- https://lyonswealth.com/blog-details/how-much-money-do-i-need-to-invest-to-make-3000
