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GameStop's stock surge: Here's what Anand Mahindra has to say

Anand Mahindra, Chairman, M&M likened the Gamestop stock surge to California gold rush.

January 28, 2021 / 02:34 PM IST

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.

Also read: Explained | What is happening with the GameStop stock, the Reddit factor, who wins and who loses

Several Twitter users responded to Mahindra's thoughts with their own views on the subject.

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.
Moneycontrol News
first published: Jan 28, 2021 01:54 pm
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