GameStop did not gain anything from the increase in the value of the shares: here's why

GameStop did not gain anything from the increase in the value of the shares: here's why
The situation seems to have calmed down, but industry experts are still discussing the great financial maneuver implemented by an organized group of Redditor, which has made the value of GameStop's shares soar by launching a heavy attack on short sellers, bearish traders who bet on decline. of companies.

The "short squeeze", this is the jargon the name of the maneuver implemented, has earned a lot of money to the small investors who have become supporters of the attack. Yet, even if it seems counterintuitive, GameStop has practically gained nothing from the incredible rise in corporate value. He could have repaid hundreds of millions of debts, yet he couldn't. Why?

According to Reuters experts, US laws prevented him. Although GameStop had previously notified the Securities and Exchange Commission (SEC) of its intention to sell shares worth a total of $ 100 million, it was unable to proceed because it had not yet disclosed its most recent quarter financial results to its investors. an action that the SEC mandatorily requires prior to sale. Documents with financial results for the quarter ended January (November 2020-January 2021, to be exact) were not yet fully ready when the stock soared, so the chain couldn't capitalize immediately.

According to Seeking Alpha, the documents will be completed in time for next March 26, and disclosed together with those for the entire fiscal year. GameStop could still sell its shares, but by now the bubble has almost entirely burst: currently the shares are trading at $ 51.10, a value well below the peak of $ 483 reached in full short squeeze. The SEC, for its part, is now investigating whether and how social media and forums have illegally manipulated the value of GameStop's shares.

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