NEW YORK – A head-scratching David and Goliath story is playing out on Wall Street over the stock price of a money-losing videogame retailer.
An army of smaller-pocketed, optimistic investors is throwing dollars and buy orders at the stock of GameStop — in direct opposition to a group of wealthy investors who are counting on the stock price to plunge.
The resulting action is wild, with GameStop's stock soaring nearly 145% in less than two hours Monday morning, only for the gains to disappear quickly afterward.
The struggling company has lost $1.6 billion over the last 12 quarters, and its stock fell for six straight years before rebounding in 2020.