In GameStop saga unfolding on Wall Street, 2 Goliaths fall
January 27, 2021 7:32AM AKST
FILE – In this May 7, 2020 file photo, a GameStop store is seen in St. Louis. Two hedge funds are bowing out of their short positions on the money-losing video game retailer. Citron Research’s Andrew Left said in a video posted on YouTube that his company is going to become more judicious in shorting stocks. Melvin Capital is also exiting GameStop, with manager Gabe Plotkin telling CNBC that the hedge fund was taking a significant loss. (AP Photo/Jeff Roberson, File)
By MICHELLE CHAPMAN and STAN CHOE AP Business Writers
In the David and Goliath saga that has been captivating and confusing Wall Street recently, Goliath has fallen. Two Goliaths, actually. A pair of professional investment firms that placed big bets that money-losing video game retailer GameStop’s stock will crash have largely abandoned their positions. The victors: an army of smaller investors who have been rallying online to support GameStop’s stock and beat back the professionals. GameStop is based in the Dallas suburb of Grape Vine. One of the major investors to surrender, Citron Research, acknowledged Wednesday that it unwound the majority of its bet that GameStop stock would fall.
