So much for the efficient markets hypothesis. In August 2019 a declining physical retailer called Gamestop was valued at $300 million. At the close of trading on Friday the company was capitalised at $20 billion after becoming the focal point for a social media campaign against Wall Street short-sellers (Simon Duke writes).
It is anyone’s guess what this purveyor of video games will be “worth” after the hot money moves to another target. During last month, Gamestop shares surged from $18 to $325. Wall Street analysts’ average price target for the stock stands at a little over $13.
The wall of cash that hit Gamestop provoked an extraordinary technical rally in the hitherto unloved retailer. Hedge funds had to cover their short positions by buying
