After a surge in the stock price of video game retailer GameStop, industrialist Anand Mahindra shared his thoughts on the US stock market.
In a tweet, the Mahindra Group Chairman said the market ought to experience a natural correction after this "artificial value creation".
"Perhaps one of the most significant challenges to the theoretical underpinnings of stock markets. Almost like a populist uprising. If the market doesn't experience a natural correction to this artificial value creation, it'll be no different from California during the Gold rush," Mahindra tweeted.
— Payal Agarwal (@payaltalk) January 28, 2021
So-called “Analysts” and “Investors” have been manipulating the market significantly. All the time. Modeling, Algorithms, high-speed transactions, big shorts -all have been full of fallacies, distortions, and skillful manipulations! Not a mix of greed and habitual exploitation?— SATISH KUMAR (@MatramSatish) January 28, 2021
Shares of GameStop, listed on the new York stock Exchange, jumped 135 percent on January 27, bringing their total gain since January 12 to about 1,700 percent, Reuters reported.
Retail investors had driven the surge in GemStop's share price, squeezing hedge funds that had shorted on the stock. According to media reports, the surge was possibly driven by chatter on the "Wallstreetbets" Reddit chat room.AMC Entertainment Holdings Inc, Blackberry Ltd, Nokia Oyj had also see massive gains.