- shares in gamestop soared last week, surging more than 800%.
- co-founder ryan cohen’s 12.9% stake, which he acquired in August for $76 million, is now is worth nearly $3.1 billion.
- Members of a reddit forum dedicated to playing the stock market have pushed the stock to a record high.
- Visit page business insider home for more stories.
A month ago, gamestop announced to shareholders that it would close more than 1,000 stores by the end of March.
Since then, the video game retailer’s stock has soared more than 1,900%, jumping 800% in the last week alone. the company can thank a reddit forum called wall street bets for this massive rally. the forum has over 2 million members who are mostly committed to buying stocks right now. (It didn’t hurt that Elon Musk tweeted “Gamestonk!!” during after-hours trading on Tuesday.)
Redditors are posting screenshots of their paper winnings from the rally, but the biggest winners aren’t bragging online. Gamestop’s three largest individual shareholders have earned a combined $4.1 billion since January 20, according to insider calculations using Securities and Exchange Commission filings.
The biggest beneficiary of the stock surge is Ryan Cohen, co-founder of pet food e-commerce company Chevy, which made a $76 million investment in Gamestop in August. his 12.9% stake is now worth nearly $3.1 billion, up from $352 million on January 20, based on a price of $340.42 as of 1:00 p.m. m. et wednesday. The 35-year-old sold chew to PetSmart for $3.35 billion in 2017, which was the largest e-commerce acquisition in history at the time.
cohen also recently joined the gamestop board.
The second biggest winner is Donald Foss, who bought a 5.3% stake in February for about $12 million. his stake is now worth $1.2 billion. The founder of Credit Acceptance Corp., a provider of subprime auto loans, has a total fortune of $2.5 billion, and his net worth has risen more than $660 million since the market closed Tuesday, according to Forbes data.
gamestop CEO george sherman’s 1.2 million shares are now worth $400 million. If stocks continued to rise at this rate, you could be a billionaire in a matter of days.
representatives of cohen, gamestop and credit acceptance corp. did not immediately respond to a whistleblower’s request for comment.
E-commerce entrepreneur attal alain joined the gamestop board on January 10, just in time. His 125,000 shares, which were worth $4.9 million when reported to the SEC on Jan. 19, are now worth $42.6 million.
michael pachter, managing director of wedbush securities, has dismissed the rally as “a cult phenomenon”.
“They currently don’t have the earnings power to support such a high price,” Pachter told Insider. “The market seems to believe that Ryan Cohen has a strategy that will greatly increase profits. I can’t credit him for his genius until I see what the strategy is.”
[editor’s note: an earlier version of this article’s title was changed to reflect that ryan cohen’s gamestop stock rose by $2.7 billion in value and is now worth $3.1 billion. it did not increase by $3.1 billion in value.]