This week, GameStop shares traded Wall street crazy, due to a massive buyout by Reddit users. The stunt soared the shares in the video game company, causing heavy losses for some and millionaires for others.
Such is the case of businessman Ryan Cohen , founder and former CEO of Tough , an e-commerce of pet supplies. The 35-year-old investor has become a billionaire, thanks to the stock market and the initiative of the ‘redditors’. Its fortune is estimated to have risen to $ 1.7 billion (about 35 billion Mexican pesos).
GameStop’s share praise the height in shot of the collective action from Reddit users , in a forum named ‘Wall Street Bets’ , with more than 4.5 million followers. There they arranged to buy shares against which hedge funds bet. The purchases GameStop shares traded down from $ 17 on January 1 to $ 469 on January 28 .
At the end of last year, Ryan Cohen invest in $ 76 million to buy more than 9 million shares of GameStop . His intention was to help restructure the Texas-based company, which was losing money.
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Ryan Cohen (@ryancohen)December 9, 2020
“Unfortunately, it is clear that GameStop does not currently have the mindset, resources and plan to become a dominant player in the industry , ” Cohen said in a public letter to the board of directors of video game stores.
“GameStop should evolve into a technology enterprise that delights gamers and delivers extraordinary digital experiences, and should not be a video game retailer that over-prioritizes its physical presence and stumbles upon the online ecosystem. , “the former CEO of Tough .
GameStop share increased by more than 800% since Cohen made the remarks. Now, the value of his interest is $ 825 million .
In addition, the 3.4 billion he received in 2017 when he sold his company Tough on PetSmart . Forbes estimates the businessman is worth being close to $ 1 billion . The investor also got three seats on the GameStop board in early January, one for himself and two for former Chewy drivers.
What awaits Ryan Cohen?
It’s impossible to predict how long Cohen will stay on the billionaire list, because GameStop stocks are more volatile than ever.
‘Gamestop shorts and trousers are in a play-off battle fought in the stock market and on social media platforms “Ihor Dusaniwsky, managing director of S3 Partners, told Forbes on Tuesday.
The specialist noted that short sellers on shares fell $ 5 billion this year .
“Both parties hold on to a firm conviction, but in the end, one party will be the winner, and in the later rounds of the battle, the major shareholders are far ahead,” Dusaniwsky said.
Related:
The GameStop Effect: Emperor Ryan Cohen Went to Multimedia Millionaire on Wall Street Thanks to Reddit
The GameStop Effect: Businessman Ryan Cohen Becomes a Billionaire on Wall Street Thanks to Reddit
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