Businessman Ryan Cohen Became Billionaire On Wall Street Thanks To Reddit

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This week, GameStop actions led Wall Street crazy, due to a massive takeover by Reddit users. The coup sent the shares of the video game company soaring, causing heavy losses for some and millionaire profits for others.

This is the case with Ryan Cohen businessman , founder and former CEO of Soft , an electronic pet supplies business. The 35-year-old investor has become a billionaire, thanks to stock market games and the initiative of “redditors”. His fortune reached around $ 1.7 billion (around 35 billion Mexican pesos).

GameStop share the price has skyrocketed because of collective action of Reddit users , in a forum called Wall Street bets , with more than 4.5 million subscribers. There they organized themselves to buy stocks that hedge funds bet against. Purchases increased GameStop shares from $ 17 on January 1 to $ 469 on January 28 .


At the end of last year, Ryan cohen invested in $ 76 million buy more than 9 million GameStop actions . His intention was to help restructure the Texas-based company, which was on a losing streak.

“Unfortunately, it is clear that GameStop currently lacking mentality, resources and project to become a dominant player in the industry , ” Cohen said in a public letter to the board of directors of video game stores.

“GameStop must evolve into a technology company that thrills gamers and delivers exceptional digital experiences, not remain a video game retailer that over-prioritizes its physical presence and stumbles into the online ecosystem. Added the former CEO of Soft .

GameStop Shares increased by more than 800% ever since Cohen made those remarks. Now the value of his stake is $ 825 million .

To this must be added the 3.4 billion he received in 2017, during the sale of his company Soft at PetSmart . Forbes estimates that the businessman is worth almost $ 1 billion . The investor also landed three seats on GameStop’s board in early January, one for himself and two for former Chewy executives.

What awaits Ryan Cohen?

It is impossible to predict how long Cohen will remain on the billionaire list because GameStop stocks are more volatile than ever.

“Gamestop’s Shorts and Longs Are in a Knockout Battle on the Stock Exchange and on Social Media Platforms Ihor Dusaniwsky, managing director of S3 Partners, told Forbes on Tuesday.

The specialist noted that short sellers betting against stocks fell about $ 5 billion this year .

“Both sides hold on with firm conviction, but in the end one side will be the absolute winner, and in the final rounds of this fight, the big shareholders are ahead.” Said Dusaniwsky.

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The GameStop effect: businessman Ryan Cohen became a Wall Street billionaire thanks to Reddit
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