GameStop’s insane and dramatic stock market chaos may have cost NBA legend Michael Jordan half a billion dollars, significantly reducing his net worth.
NBA legend Michael Jordan may have lost $ 500 million in the big GameStop saga. The iconic former Chicago Bulls player doesn’t have to worry about money thanks to his brand associations, his successful basketball career and more, but losing $ 500 million thanks to betting against GameStop is not something one can do. easily undone.
The GameStop saga has been one of the most important for almost everyone involved. Although it potentially saved GameStop from bankruptcy, the volatility was deadly for any investor. GameStop shares soared from just $ 20 in early 2021 to nearly $ 500 at an all-time high, a record for the struggling retailer. The sudden jump from double digits to high triple digits was sparked when Reddit users noted that GameStop was one of the shorter stocks, meaning that hedge funds had gambled on its demise. The Reddit army along with many other average folks with some money to spend realized that they could make stocks skyrocket by investing heavily in them, all until hedge funds hedged their shorts, which would cause them to still go higher. plus.
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Shares of GameStop eventually crashed, but it still had some casualties, potentially including the great Michael Jordan (via Chicago Sun Times). Jordan’s net worth was previously valued at $ 2.1 billion in April 2020, but Forbes reports that his net worth plummeted to $ 1.6 billion. The basketball icon now owns the Charlotte Hornets and two years ago sold a minority stake to Gabe Plotkin, founder of Melvin Capital. Melvin Capital was one of the hedge funds that shortened GameStop and was seriously injured, requiring billions in cash in the aftermath. This has not been confirmed to be the cause of Jordan’s big drop in net worth, but it is largely speculated to be a factor.
Michael Jordan is still a billionaire so he will be fine, but a loss of $ 500 million is nothing to scoff at. GameStop plans to transition to an e-commerce business model and these new plans have caused the retailer’s stock to skyrocket once again. Whether or not it will be worth it in the long run remains to be seen. Regardless, retail investors are bound to keep hedge fund feet on fire for a while.
GameStop He is expected to live to fight another day as Chewy.com founder Ryan Cohen helps lead the charge into a new era for the retailer. Unfortunately, this meant losing key board members like Reggie Fils-Aime in the process, but it’s a loss that may need to be incurred to keep the game retailer afloat. Only time will tell how successful it can be and if it can go head-to-head with other e-commerce platforms like Amazon. For now, however, he appears to have taken a hunk of a giant into the hardwood.
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Source: Chicago Sun Times, Forbes
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