US company Gamestop (and subsidiary EB Games which operates in New Zealand) is focused on selling video games, gaming consoles and associated products - and it is currently in the middle of an unprecedented stock war.
"Share prices have risen for many gaming companies during the COVID era due to an increase in gaming and the use of share trading platforms such as Robinhood in the US, and Hatch in New Zealand. Uniquely, Gamestop shares have risen over 100 times compared to their January 2020 price. However, this is a level that is completely unrelated to the underlying value of Gamestop's business be it past, present, or its likely future," says Gorilla Technology chief executive and futurist Paul Spain.
"Interest in Gamestop stock has been driven by the 'WallStreetsBets' forum of online platform Reddit. Contributors to the 'WallStreetsBets' subreddit have enticed readers to buy and hold Gamestock shares. The suggestion from those posting on Reddit is that this is a way to hurt hedge funds and put money back in the hands of the struggling masses," Spain says.
But Spain thinks the high price of the share at the moment is not sustainable.
"A crash seems inevitable. When this happens, a lot of people will be left out of pocket including those enticed by Reddit posts to buy up and hold this stock".
Gorilla Technology CEO and Futurist Paul Spain joined the show.
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