GameStop video game store transactions were suspended on Wall Street half an hour before the close of the session, after the title rose by more than 100%.
This situation followed the disclosure on Tuesday of the resignation of its financial director, Jim Bell, who, however, according to GameStop, is not motivated by “a disagreement on any matter related to the activities, regulations or practices of company “, as communicated to the capital market regulator (SEC). Jim Bell will step down on March 26.
However, on the Business Insider website, which cites sources familiar with the process, Bell was reportedly “put on the doorstep” by activist shareholder Ryan Cohen, who recently entered the company’s capital and management.
Cohen’s entry into GameStop, a co-founder of the online pet products retailer Chewy, had been one of the triggers for the company’s sudden Wall Street valuation move in late January.
A group of amateur investors, who were discussing in a popular forum on the Reddit website, had decided to bet heavily on this store chain, which caused a sharp appreciation of the security on the stock exchange.
In this way, these investors also wanted to spoil the plans of big hedge funds and Wall Street barons, who had bet on the GameStop price drop, given its mediocre results, its outdated economic model and its complicated growth prospects.
A speculative frenzy then won the market for several sessions and elicited lively reactions from US regulators and congressmen.
These officials – Treasury Department, SEC, central bank, congressmen – seek to determine whether some financial actors, such as hedge funds and brokerage platforms, have tried to manipulate the market to limit their losses.
After a spike in the price, which brought it to over $ 347 on January 27, the GameStop stock devalued, ending last week at around $ 40.
Today, after being suspended several times at the end of the session, due to strong volatility, it closed the day at $ 91.71.
Source: SÁBADO by www.sabado.pt.
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