"From memes to reality" is what the upcoming GameStop movie should use as a slogan. Titled "Dumb Money", the upcoming film will premiere on October 20 and give casual audiences a "comedic" look at one of the most unlikely things to have happened in stock market history.
Dumb Money is based on the book, The Antisocial Network, that was written by Ben Mezrich. The author is also behind the book-turned-films, The Social Network and 21.
In a nutshell, Dumb Money will chronicle what happened in 2021 that saw the GameStop stock price (NASDAQ ticker GME) go from historical lows to absurd highs. Things have stabilized for the much-maligned video game retailing company since, but the stock price is still significantly higher compared to where it was before the COVID-19 pandemic.
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Dumb Money boasts an ensemble cast of who's who that includes the following:
- Paul Dano
- Seth Rogen
- Pete Davidson
- Sebastian Stan
- Shailene Woodley
- Dane DeHaan
- Anthony Ramos
- America Ferrera
- Nick Offerman
GameStop remains as controversial then as it is now. Most recently, GameStop employees found themselves confused as a handful of pre-orders of the most expensive edition of the RE4 Remake were canceled for apparently no reason. GameStop is also technically still bleeding with no signs of improving, so there's that.
If you're curious to find out how the GameStop fiasco happened, the situation wasn't as complicated as you'd think. Those behind the entire thing just found a way to beat hedge funds at their own game.
How did they do this? They looked at the price of the GameStop stock and found that it was extremely undervalued as if by design. Then, they found out that they could cost several hedge funds millions of dollars by driving up the stock price. One of the ways hedge funds make money is by borrowing stocks at a high price and returning them after they've repurchased the same stock at a lower price at a later time. So, when GameStop stock started selling for more, the hedge funds had no choice but to buy the same stocks they borrowed for a higher price than they initally sold them for, creating a pseudo-bullish market.
Ultimately, when the guys who bought GameStop stock at a lower price succeeded in driving it up, they made a killing. As for those who joined late, they found themselves making less money than they put in.