GameStop Shock

The Briefing Room · Feb 4, 2021 · 29m

There was pandemonium on the US stock market when shares in a chain of video game shops went through the roof. At one point GameStop’s stock, which averaged just seven dollars last year, was valued at more than 480 dollars. The frenzy was fuelled by cheerleaders on Reddit.

Investors were being encouraged to buy the stock even as it became clear that they would probably lose most of their investment. There was a mood of rebellion online and clear hostility to millionaire hedge fund managers.

Then one of the platforms that offered small investors free access to the market said it would…