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Could shopping malls be Reddit’s next stock market goal?
Movement outside a Chico’s FAS Inc. store in Fort Myers, Florida, USA, on Monday, March 3, 2020. For the third quarter, total sales improved 14.8% from the thirteen weeks ended August 1, 2020, powered by robust digital performance and recovery of store revenue. Photographer: Eve Edelheit / Bloomberg via Getty Images As of Friday, redditors on the subreddit r / WallStreetBets began targeting Wall Street short sellers – market makers and hedge funds betting on the price of a stock falling. It started with GameStop, the high school game store for GameCube games. Now that gamers are visiting online stores and closing thousands of GameStop stores, hedge funds were sure the retailer’s inventory would continue to decline. That’s why they bet loads of money to make a profit. For those of you unfamiliar with short selling, according to Refinery29 Work & Money author Whizy Kim, it works like this: “Step one, borrow shares from someone else. Step two, sell it right away. Step three, wait until the stock price drops and buy the same number of shares you borrowed. Step four, return the borrowed shares and make profit from the difference in price. When redditors decided to pour their money into GameStop, thus increasing the company’s share price on New Year’s Eve from $ 18.84 to more than $ 250, all relevant hedge funds had to be forced to sell their shares at a loss. GameStock’s valuation soared – its value exceeded $ 10 billion on Tuesday. Today’s Fast Update: Express Inc: + 245% AMC Theaters: + 230% Blockbuster Video: + 181% GameStop: + 125% Nokia: + 50% Build-A-Bear: + 45% BlackBerry: + 24 % Bedbad & Beyond: + 23% Tootsie Roll: + 14% – Jon Erlichman (@JonErlichman) January 27, 2021 The same thing happens with other forgotten brands like Build-A-Bear, Blockbuster and BlackBerry, which are hidden away in the back of our brains, only to be educated in conversations about childhood birthday parties and Brick Breaker. Fashion may also have taken a hit. According to a tweet by Blochberg anchor Jon Erlichman, the inventory of the clothing store Express has risen 245%. Despite Wedbush analyst Jennifer Redding telling Bloomberg that the Ohio retailer is “cash flowing” as a result of the pandemic, more than 350 million Express shares were traded on Monday – a record high for the clothing chain – and their shares. almost doubled. According to Business of Fashion, Express is not the only fashion brand on Reddit’s radar. The publication speculates that WallStreetBets’ next conquest may be parent brands. Analysts who spoke to BOF said that the same small WallStreetBets investors who bought shares in GameStop, Blockbuster and more are now ready to do the same with shares for malls like J.Jill and Chico’s, especially since restrictions have been imposed. place to slow down the trading of GameStop and AMC shares. Despite the increase in demand for beige, box-like button-downs over the turtlenecks and knitted, wide-legged trousers in fashion – comfortable, neutral clothing that appealed to mothers of the ’90s and’ 00s, the shops that were known for it were struggling with the years. The pandemic exacerbated it. According to WWD, the parent company for retailers such as Chico’s, White House Black Market and Soma lost $ 178 million during the first wave of the pandemic; in December, Retail Dive reported that J.Jill remained a loss of $ 24.1 million, with sales up 30% in the third quarter. According to Susan Anderson, an analyst at B. Riley Securities, who is listed in BOF because some fashion retailers have such low market capitalizations, which means it’s cheaper to infiltrate their stocks, these are perfect targets for the next round of Reddit: do we break down Wall Street with next? “Even if members of WallStreetBets hold a lot in J.Jill and Chico’s shares, which increase the price and value, it obviously does not necessarily mean that one of the two will survive in the long run. As we have learned from the J.Crews and Lord & Taylors of the world, the pillars of shopping malls fail to capture the interests of the internet savvy consumer, even pre-pandemic. And despite the fact that the Diane Keaton-in-Something’s Gotta Give aesthetic is underway – as shown by the clogs and wavy shirts leaning to the right – from where we sit, it does not look like the brands they have shown off in the past , will be taken along for the ride. Refinery29 asked Express to comment, but has not yet heard of it at the time of publication. As you can see? How about a little more R29 goodness, here? Why Everyone’s Talking About GameStop Shares J. Crew Files for Bankruptcy What Does Topshop’s Destruction Mean to Millennials?