At the beginning of last year, the vigorous "retail vs. Wall Street" incident in the US stock market must have made many investors remember it vividly, and the famous WSB concept stock $ Game Station (GME. US) $ also became famous in the First World War.
The individual investor frenzy began in January, when millions of individual investors drove up the stocks that were shorted by hedge funds. Abundant liquidity, historically low interest rates and savings accumulated during the pandemic also played a role. In this context, a number of Meme stocks represented by game stations have emerged in the capital market.
Last year, a hedge fund made a precise bet on the game station — buying for less than $10 and selling the stock when its price peaked.
With a large number of analysts at the game station giving a sell rating and an unprecedented rise in bearish sentiment, Mashaal decided to buy the stock in September 2020.
And what is the signal that makes him sell accurately? Musk's tweet.
That's why Senvest Management, the best-performing hedge fund in 2021, was able to make a $700 million profit from the gaming station and boost its annual return to more than 85 percent. The deal was the best single deal in the company's 25 years of existence.
Tesla CEO Musk tweeted after the close of trading on January 26, 2021: "Gamestonk!! "。
Richard Mashaal, founder of Senvest Management, said in an interview: "He used that tweet to cheer us up... We all looked at each other and thought how can you get beyond it? So, for us, it's a sign that the momentum [of the gaming station] has reached its peak and we're starting to pull out of our remaining positions."
The next day, Game Station reached a closing high of $347.51 per share, when Senvest sold off his long position and made a $700 million profit on the deal.
What do cattle friends think of Musk's tweets?
Do you agree with the hedge fund that the day of the "stock recommendation" is the time to escape the top?
Is Musk the "hype guru" or the "king of technology"?
Welcome to the comments section for a passionate discussion!
Image source: Network