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Research into the Factors that Cause a Price Bubble in GameStop During 2021

Year: 2025

Type: article

Abstract: The GameStop is an old game product retailer in the US. With the increasing trend of online game trading, the offline sales of Gamestop are impacted, and the loss of sales from 2017 to 2021 increased by 77%. Thus, amounts of short sellers, led by Melvin Capital, began betting against GameStock's stocks during January 2021, while numbers of retail investors were long the stocks, and subsequent Short Squeeze push the price to the peak $482.850. Obviously, the GameStop stocks are over-valued during 2021, a series of actions creating a price bubble. The conclusion of this paper is to analyze the four factors that caused price bubble of the GameStop during 2021- Short Squeeze, the impact of social media, the impact of retail investors, and the online sales - through using data and charts.

Source: Advances in Economics Management and Political Sciences

DOI: 10.54254/2754-1169/2024.25133

Authors: Mingyang Chen, Hanlin Yin, Yubo Huang, Zitao Zhu

Institutions: University of Nottingham Ningbo China, University of Nottingham, St. John's School, Guizhou University of Finance and Economics, Nanjing Foreign Language School

Language: English

Topic: Financial Markets and Investment Strategies

Subfield: Finance

Field: Economics, Econometrics and Finance

Domain: Social Sciences

Open Access status: hybrid

OpenAlex ID: W4412495310

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