Gamestop has been in troubled waters for a long time. The group needs a lot of money to convert its branches, including the new business model – Money that wasn’t there for the past few years
But at the beginning of the year, a Reddit community started an unprecedented campaign. The cheap Gamestop stocks were bought in abundance in order to thwart the profit intentions of large hedge funds. These had already written off the game dealer and were just waiting to profit from its ruin. Even Netflix was interested in the strange incident!
If you want to study the entire chronicle of the unprecedented action again in peace, you can do so without any problems. Because at that time we created and maintained a timeline with the developments on the topic, which you can now take your time to see:
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What happened around the Gamestop share hype
Meme stocks are a billion dollar business
Due to the Reddit campaign, the Gamestop share experienced a real boom and shot to unimagined heights. At times, the share price was beyond the $ 400 mark, which was an increase of 2300 percent compared to the beginning of the year. Over time, the price fell again, but the value remained at a significantly higher level than before the hype.
In the coming months, however, the situation will normalize again. The company knew that too, which is why they seized the opportunity and placed five million shares on the New York Stock Exchange.
This action brought fresh money into the coffers – a lot at that. A new annual report that the group has submitted to the US tax authorities shows that the action a whopping $ 1.13 billion has brought in.
The recent direct placement was not the first lucrative measure due to the equity boom. In April, Gamestop was able to secure over $ 551 million in a similar way. In 2021, the company will have raised more than 1.6 billion dollars through direct placements. This will have a positive impact on the next balance sheet.
Group restructuring should progress
This sum will also be useful, because the company has been planning for a long time to change its business model and, in the process, also to redesign the numerous stores worldwide.
Due to the change in the game industry towards digital sales, Gamestop has already had to close many stores in recent years. In the future, they would like to concentrate more on the gaming merchandise business and redesign the branches as a place to hang out in comfort, in order to attract more customers again.
Did you also take part in the Reddit campaign? And how do you find the reorientation of the group towards a meeting place for gamers? Let us know in the comments!