During the last days you had probably heard about the case GameStop.

How did it started?

You will probably know GameStop. Due to the Covid-19 the share price reached 3-4 $. This decline, we know very well, is related to structural changes in the video game market: the steady increase in digital sales of video games, the success of GamePass, the arrival on the market of cloud solutions promoted by major companies such as Google Stadia and NVIDIA GeForce Now.

Are we there? So to summarize, GameStop is a company that, for the financial market, is destined to fail, to close as soon as possible because it is not able to adapt to new times, to the digital market of video games. And in fact its shares are in constant decline.

So I as a large investor choose to go short, to make my bet on GameStop because its market value will continue to fall. I'm sure it will. I borrow a lot of shares of the company, sell them and start waiting to buy them back at a price that will surely be lower than the initial price. It's an easy gain, almost inevitable.

But here the revolution happens, an event that has very few precedents on the financial market. Indeed, according to many analysts, it is a truly unique precedent that could change short selling practices forever.

A group of people, normal people, not large funds or investors, but clearly with a good liquidity, begins to talk about these shares of GameStop and does so on a Reddit quite well known for those who enjoy playing in the stock market as a hobby: WallStreetBets.

What about Elon Musk?

Elon twitted this:

In the after-market and in the next session the price literally exploded reaching a maximum of 483$!

It already happened with Signal when he twitted "use Signal" and the next day we had a +1000%!

This article is for enterteinment only and it's not a financial advice to invest in GME.

The question does not seem to end here and we will see good things in the coming days. What do you think? Let me know in the comments!

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