If you've google searched 'GameStop explained for dummies' in the past seven days, you're not alone. Trying to understand the GameStop saga can be like trying to understand upside-down calculus.
Here's the gist: Wall Street has witnessed an uprising of amateur investors who have caused rich people to lose lots of money.
As the headline suggests, we're here to explain it simply. Like this woman, who looks like she's about to cry with every new sentence as she tries to explain GameStop.
a normal person explains what’s happening on the stock market: pic.twitter.com/zKKvULCirX— Avalon Penrose (@avalonpenrose) January 27, 2021
So let's pretend you're a totally normal person who just wants to understand GameStop. Here is what you need to know.
What even is GameStop?
GameStop is the world's largest retail gaming company. Think Blockbuster but for video-games.
Thanks to the digitalisation of video games, compounded by the pandemic, GameStop was struggling in the past year. Their physical shops - the basis of their business - weren't doing well.
In April last year, their shares were priced at $US3 and were expected to fall.
Instead of slumping, though, they surged.
Why? Because a group of people on Reddit wanted to disrupt Wall Street, the home of the New York Stock Exchange. And they did so, extremely successfully.