Ryan Cohen has gotten an impressive 2,400% gain from his GameStop investment in the past eight months, valuing his investment at almost $2 billion right now.
The activist investor and Chewy cofounder first revealed his position in the video-game company a year ago, and expanding his holding to right over 9 million shares by the middle of Dec. He spent around a total of $76 million to create that stake, regulatory documents reveal, showing he gave an average price of $8.40 per share.
GameStop’s stock value has now gone up since then, puting Cohen’s 12.5% investment at about $1.9 billion today – which is an almost 25-fold return on his money. The company’s shares have sky-rocketed more than 1,000% in just this year alone, from under $20 at the beginning of January to around $210 at the time of this writing.
Cohen is both a top beneficiary and important driver of the stock boost. The billionaire e-commerce titan’s stake was a confidence vote in the GameStop company last year, and he hinted about his plans to change the game retailer into a tech company in a message to its board of directors last Nov.
Since then, he has overhauled the board, claimed a role of chairman, and showed his commitment to changing the business and aiding it in meeting its potential.
Also, Cohen’s activism was an important reason why retail traders and investors chose to do a short squeeze on the company’s shares back in January, increasing its price to as high as $483 – briefly putting Cohen’s stake at about $4.3 billion. His involvement could have also shored up GameStop’s stock when the firm give 8.5 million new shares previously this year, bringing in $1.7 billion.
Many investors made a lot of money from GameStop’s incredible rise. But investing experts warn that meme stocks can quickly fall just as fast as they rise. Investors are urged to not invest any money that they cannot afford to lose. Given their volatility, meme stocks have a lot in common with cryptocurrencies on both the upside and downside.
Author: Blake Ambrose