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Grapevine's GameStop strikes the big screen in 'Dumb Money'


Grapevine's GameStop strikes the big screen in 'Dumb Money'


Remember when GameStop had a minute in the spotlight as small financiers rallied the stock cost and left huge investors wondering what happened?


It's no surprise, then, that this 2021 David-versus-Goliath story discovered its method to Hollywood. GameStop now discovers itself in the spotlight once again as a new Sony Pictures release, "Dumb Money," tells the story of how the company ended up being a "meme stock." A meme stock is when shares of a company gain social media popularity, and individual investors, as opposed to massive traders, begin purchasing a stock.

A social media phenomenon, fueled by little retail financiers, assisted shore up the company's stock cost, and GameStop has actually lived to sell more video games. Along the method, the little financiers exposed some flaws in the way stocks are purchased and sold, particularly to large investors.

GameStop is not out of the woods yet. The company had a net loss of $2.8 million in its 2nd quarter, though that is better than the $107.8 million loss for the very same quarter the previous year. On Sept. 28, on the eve of the film's across the country release, the business announced that billionaire and Chewy.com founder Ryan Cohen was called president and CEO. The business's previous CEO, former Amazon executive Matt Furlong, left two months back, one of a string of CEOs the business has had over the past 3 years. Cohen's holding company, RC Ventures, is the biggest investor of GameStop, owning 12.1% of the stock. He will not receive settlement as president and CEO, the company said.

GameStop officials did not supply any discuss the movie.

" Dumb Money" concentrates on members of a finance-focused Reddit community called r/wallstreetbets, where individuals talk about stock and alternative trading. Members of that subreddit helped organize private investors to focus on GameStop. Their financial investments increased the stock rate and put the professional financiers, who had anticipated GameStop to stop working, in a hard position.

Paul Irvine, professor of international financing and investments at TCU's Neeley School of Business, stated the GameStop episode was special.

" It was the first time that anyone discovered a method to collaborate what I call 'sound' traders and convinced them to all do the same thing," he said..

Irvine said the elements that made GameStop the ideal meme stock don't typically apply to other business. AMC Theatres, Bed Bath and Beyond and BlackBerry are other stocks that gained financial investments as meme stocks however not to the impact level that individual financiers had on GameStop.

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" I think a great deal of these 20-somethings who invested probably grew up in GameStop stores, playing games there, and they had a great deal of fondness for it," he said. "That's not quite the case with a lot of other stocks. GameStop ended up being technically an ideal stock to try something like this on.".

Irvine likewise said timing had something to do with the success of the GameStop financial investments.

" You need to bear in mind that in 2021 you had a lot of individuals sitting at home, and they had money from the federal government because of the pandemic," he said. "They had money and time to do something like this. That's not the case today.".

Rob Smat holds a copy of his book on the GameStop story, "Power to individuals." (Courtesy picture
While Irvine sees the GameStop story as special, Fort Worth filmmaker and author Rob Smat thinks the meme stock phenomenon is simply starting. He has a new book coming out on the subject, "Power to the Players: The Real GameStop Story, and Why It's Only Getting Started.".

" What appealed to me about this story was that these individuals that invested in GameStop were activists that were not just striving, they were working smart," he said. "It's about producing modification, which is what I saw them doing and similar to Thomas Marshall in my 'Walkout' film.".

" Walkout" tells the story of a Walmart staff member who promoted for modification after the mass shooting occasion at the retailer's El Paso area in 2019.

Smat believes there are more possible GameStop-type stocks out there and states it is just a matter of time prior to the marketplace sees more effect from these investors.

" I believe GameStop was just the beginning," he stated.

' Dumb Money'.

Directed by Craig Gillespie from a script by Lauren Schuker Blum, Rebecca Angelo and Ben Mezrich, the film is based upon the 2021 book "The Antisocial Network" by Mezrich. The cast consists of Paul Dano, Pete Davidson, Vincent D'Onofrio, America Ferrera, Nick Offerman, Anthony Ramos, Sebastian Stan, Shailene Woodley and Seth Rogan. The movie opens in large release Sept. 29.

Bob Francis is business editor for the Fort Worth Report. Contact him at bob.francis@fortworthreport.org.

At the Fort Worth Report, news choices are made separately of our board members and monetary fans. Learn more about our editorial independence policy here.

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The Fort Worth Report keeps the copyright for all of its published content. If you have any other concerns, contact Managing Editor Thomas Martinez.Grapevine's GameStop hits the big screen in 'Dumb Money'.
by Bob Francis, Fort Worth Report.
September 28, 2023.

<< h1>> Grapevine's GameStop strikes the cinema in 'Dumb Money' <.
<< p class="" byline" > by Bob Francis, Fort Worth Report << br/>> September 28, 2023<.

<< p>> Remember when << a href=" https://news.gamestop.com/">> GameStop< had a minute in the spotlight as small financiers rallied the stock cost and left big investors wondering what occurred?&& nbsp;. < p > It's not a surprise, then, that this 2021 David-versus-Goliath story found its method to Hollywood. GameStop now discovers itself in the spotlight once again as a brand-new Sony Pictures release, "Dumb Money," informs the story of how the business ended up being a "<< a href=" https://www.investopedia.com/meme-stock-5206762#:~:text=A%20meme%20stock%20refers%20to,particularly%20on%20social%20media%20platforms.">> meme stock<." A meme stock is when shares of a company gain social networks appeal, and individual financiers, as opposed to massive traders, start investing in a stock.<.
<< p>> In 2021, the Grapevine-based gaming retailer looked to be on the brink of collapse-- a lot so that big investors, consisting of hedge funds, were "shorting" the stock, essentially wagering it would stop working. A social media phenomenon, sustained by little retail investors, assisted shore up the company's stock rate, and GameStop has lived to sell more video games. Stock in the business, considered as an obsoleted, mainly brick-and-mortar seller, became highly valued, going from $40 a share to $400 within a matter of days, mostly due to the fact that of the activism of small retail financiers. Along the way, the little investors exposed some defects in the method stocks are purchased and offered, especially to large financiers.<.
<< p>> GameStop is not out of the woods. The business had a bottom line of $2.8 million in its second quarter, though that is better than the $107.8 million loss for the very same quarter the previous year. On Sept. 28, on the eve of the film's across the country release, the business revealed that billionaire and << a href=" https://www.chewy.com/">> Chewy.com< creator Ryan Cohen was called president and CEO. The business's previous CEO, former Amazon executive Matt Furlong, left 2 months earlier, among a string of CEOs the company has actually had over the previous 3 years. Cohen's holding company, << a href=" https://finance.yahoo.com/quote/GME?p=GME&.tsrc=fin-srch">> RC Ventures<, is the largest investor of GameStop, owning 12.1% of the stock. He will not get compensation as president and CEO, the company said.<.
<< p>> GameStop authorities did not offer any discuss the film.<.
<< p>>" Dumb Money" focuses on members of a finance-focused Reddit neighborhood called << a href=" https://www.reddit.com/r/wallstreetbets/">> r/wallstreetbets<, where individuals discuss stock and option trading. Members of that subreddit assisted arrange private financiers to concentrate on GameStop. Their financial investments increased the stock cost and put the professional financiers, who had actually anticipated GameStop to fail, in a difficult position.<.
<< p><> < a href=" https://neeley.tcu.edu/Irvine-Paul">> Paul Irvine,< professor of global finance and investments at TCU's Neeley School of Business, stated the GameStop episode was unique.<.
<< p>>" It was the very first time that anybody discovered a way to collaborate what I call 'noise' traders and convinced them to all do the very same thing," he stated. <.
<< p>> Irvine stated the elements that made GameStop the ideal meme stock don't often use to other business. AMC Theatres, Bed Bath and Beyond and BlackBerry are other stocks that acquired financial investments as meme stocks however not to the impact level that private investors had on GameStop.<.
<< p>>" I believe a lot of these 20-somethings who invested probably grew up in GameStop stores, playing games there, and they had a lot of fondness for it," he stated. "That's not rather the case with a great deal of other stocks. GameStop turned out to be technically a best stock to try something like this on."<.
<< p>> Irvine likewise said timing had something to do with the success of the GameStop investments.<.
<< p>>" You have to remember that in 2021 you had a great deal of individuals sitting in the house, and they had cash from the government because of the pandemic," he stated. "They had cash and time to do something like this. That's not the case today."<.
<< figure class=" wp-block-image alignleft size-large is-resized"><> < img src=" https://fortworthreport.org/wp-content/uploads/2023/09/IMG_8604-1-994x1024.jpg" alt="" class=" wp-image-89781" design=" width:290 px; height:299 px" width=" 290" height=" 299"/><> < figcaption class=" wp-element-caption">> Rob Smat holds a copy of his book on the GameStop story, "Power to individuals." (Courtesy picture

This << a target="" _ blank"" href="" https://fortworthreport.org/2023/09/28/grapevines-gamestop-hits-the-big-screen-in-dumb-money/">article very first appeared on << a target="" _ blank"" href="" https://fortworthreport.org">Fort Worth Report< and is republished here under a Creative Commons license.<< img src="" https://i0.wp.com/fortworthreport.org/wp-content/uploads/2021/04/cropped-favicon.png?fit=150%2C150&ssl=1" style="" width:1 em; height:1 em; margin-left:10 px;"><" > < img id="" republication-tracker-tool-source"" src="" https://fortworthreport.org/?republication-pixel=true&post=89693&ga3=UA-194640723-1" design="" width:1 px; height:1 px;">" >.

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Elwood Hill
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Elwood Hill

Elwood Hill is an award-winning journalist with more than 18 years' of experience in the industry. Throughout his career, John has worked on a variety of different stories and assignments including national politics, local sports, and international business news. Elwood graduated from Northwestern University with a degree in journalism and immediately began working for Breaking Now News as lead journalist.

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