by Wolf Richter
Wolf Street
What a show! Smallish traders, by ganging together on Reddit, succeeded fabulously in what famed big short-sellers have done for years in the opposite direction. And it’s pump & dump for both.
When I say that “the zoo has gone nuts,” I mean, “literally,” as in scientifically proven and peer-reviewed. But what an incredible show it is. Why exactly the zoo has gone nuts is still up for debate, but the Fed with its $3 trillion of printed money in three months has a prominent position in this discussion.
So now we have GameStop, a brick and mortar retailer of video games whose sales in Q3 have plunged by 30% from already beaten down levels a year earlier, despite the greatest boom in video games ever brought on by people having to spend lots of time at home, and whose sales have plunged by 52% since 2016 as video game sales have migrated to ecommerce.