GameStop Debacle Crashes the Stock Market

Kenzie Denney, Writer

  From rags to riches, the GameStop stock prices have seen one of the greatest surges in the company’s history. Reddit users, enthusiastic shorts and buyers, and Wall Street are to blame for the increase and decrease in the cost. On January 27, the stock hit its highest price to date at a whopping $347.51. Just a day after on January 28, the price fell by about 44% and settled at $193.6. 

  Senior Georgia Fraser is one of the few students at Ozark High Schoolthat has invested in the stock market. She has bought trades with Apple and O’Reilly but has mutual funds, too. Although the GameStop fiasco didn’t affect her at all; she believes that this nonsense is going to blow over just like similar situations in the past. 

  “The GameStop stock price didn’t affect me at all. But I will say that it is very shaky and unstable and probably won’t stay up that high for long. The stocks will go back down just like with every other stock company; it won’t be that number forever,” said Fraser. 

  Just a week before the monumental growth, the prices had been set around $20 for quite some time. The sudden increase has raised the GameStop company’s value to more than ten billion dollars. This situation is called a “short squeeze”. A short squeeze is when investors bet on if stock prices will rise or fall. These specific investors, also known as shorts, carry out their gamble by buying shares of the company they placed their bets on. Ultimately, this led to the unexpected growth of the GameStop stock price.

  Like Fraser, Senior Chaz Smith has also taken it upon himself to learn about the stock market and invest in it. 

  “I think that the GameStop incident was really funny, as it looked like we had really stuck it to the suits and ties. But in reality, the shorts can just bet more money than the stock will drop, which it has and will continue to do so,” said Smith. 

  From this mess, Reddit’s Wall Street Bets users turned this craziness into an overnight sensation. Several memes and jokes were created in hopes to turn the situation into something more lighthearted. 

  “I didn’t invest in GameStop at all, but I really enjoyed the memes that came out of it. I had been thinking about putting money into the market for quite some time and the GameStop incident actually drove me to hire a financial advisor because I didn’t want to end up broke and angry at my own doing,” said Smith. 

  The GameStop prices are climbing once more. Even though many believe it will be short-lived, it has created a memory that will outlive its fame.