The News Radar

Timely links to external news and articles, usually valuation related, with occasional commentary.


Originally posted Thursday, 12 May 2022
The Market Is Wrong, Bro

Sure enough, it happened.

Between November 2020 and January 2021, GME's stock price exploded from $12 per share to more than $400. At its peak, GameStop was worth an astounding $22B.

Retail investors won. Several hedge funds suffered catastrophic losses, most notably Melvin Capital, which experienced a 53% drawdown in January 2021. Retail investors must have closed their positions to book million-dollar profits, right?

This is a pitch-perfect summary of confirmation bias and the shellacking that many new retail traders are taking this week.