- GameStop short-selling controversy raises questions about use of leverage.
- Appraising the story driving Tesla once more.
- Quality stalwarts and growth companies in the round-up are looking robust.
This has been a very strange week. Instead of people focusing on the outlook for company profits and the economy, the attention has been on a loss-making video games company called GameStop (US:GME) and other shares that have been heavily shorted by hedge funds.
GameStop shares are up by nearly 1,000 per cent in the last month and by 4,670 per cent in the last year. The business is forecast to make pre-tax losses of $170m in the year to October 2021 and is currently valued by the stock market at $13.8bn.