Call it the Reddit Rich.
GameStop’s parabolic stock surge over the past two weeks, partly driven by the Reddit Wallstreetbets crowd, has left the company’s three largest single shareholders with more than $ 2 billion in personal fortune. While it may not take long, the massive shareholder gains that have been made in such a short period of time are giving new meaning to the notion of instant wealth in the digital age.
The main beneficiary of the GameStop rise is Ryan Cohen, the co-founder of Chewy, who made an investment in GameStop last year to help the company accelerate its online push. Cohen began buying GameStop stock in August and increased his position in December. He invested a total of $ 76 million in approximately 13% of the company.
At the close of Tuesday, Cohen’s 13% stake was worth over $ 1.3 billion. Over the past two weeks, Cohen’s net worth rose by an average of $ 90 million a day, or nearly $ 4 million an hour. Cohen could not be reached for comment.
The other big GameStop winner is Donald Foss, the 76-year-old founder and former CEO of Credit Acceptance Corp., a subprime auto lender. Foss, who lives in Michigan, bought 5% of GameStop for about $ 12 million last February. His stake is now worth more than $ 500 million, which, according to Forbes, brings his total net worth to nearly $ 2 billion. Foss could not be reached for comment.
GameStop CEO George Sherman has seen his stake in the company rise from 3.4% to around $ 350 million.
So far, none of the three large shareholders appear to have sold shares. Several board members reduced their holdings between January 13-15 when the stock began its first surge. These sales may have been part of pre-planned sales programs.
GameStop continued its ascent on Wednesday. It more than doubled to a new 52-week high of $ 354.83 before reducing its gains.
A pedestrian wearing a protective mask walks past a GameStop Corp. store in the Herald Square area of New York, United States on Friday, November 27, 2020.
Gabriela Bhaskar | Bloomberg | Getty Images