The Case of GameStop: A Battle Between Retail Investors and Professional Hedge Funds (So-Called Elites) of Wall Street

This is a guest post submitted by an external writer. 

GameStop is a videogames and consoles chain-retailer which is listed on NYSE since 2002. Lately, the company performance was degrading and has even worsened due to the pandemic.

Observing GameStop struggling to perform well some hedge funds of wall street had heavily shorted the GameStop stocks.

This is when the retail investors came to play. Wallstreetbets, a group of mostly young day traders on social media site Reddit with more than 3 million members announced to hold the stocks to go against the professional hedge funds.

Since then the GameStop stock has soared unprecedentedly. Since the start of January, its stock price has soared up by more than 1700% despite the company's poor performance and weak fundamentals. Analysts have claimed it is the first time such a revolt is seen against the professionals or elites of Wall Street.

SEC, the regulator of NYSE has said they are monitoring the situation.

Is it going to be the beginning of the end of the monopoly of professional hedge funds and large institutional investors in the stock market? What can we learn from the situation? When will mutual funds stop dominating things at our own home (NEPSE)? 

Do you also have investment gossips to share with the world? Write to us!