The stock market and its impact on esports

April 12, 2021

The rise and fall of Gamestop revealed a lot about the stock market. While normally a stable framework for investors large and small, the brick-and-mortar video game retailer (NYSE: GME) completely rocked the boat. Massive Wall Street shorts sparked an unprecedented price increase due to retail traders. The spike was closely tied to social media, especially in existing financial circles.

Technology has made investing easier than ever, but it’s also changed the techniques people use. In the case of Gamestop, “meme investing” is now officially a thing. While there were some more or less legitimate reasons to invest in the game store, the majority of investors simply wanted to see what would happen. Retail investors don’t have nearly as much to lose, and advice (or peer pressure) from social media can be a compelling motivator.

The majority of esports news, financial or otherwise, is broken on social media. The video game business is rapidly evolving to include esports, and Gamestop is highly interested in competitive gaming.

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