BlackRock may have raked in $2.4 billion on GameStop’s retail-driven stock frenzy

Business

BlackRock Inc, the world’s largest asset manager, could have made gains of about $2.4 billion on its investment in GameStop Corp as retail investors pour money into the video-game retailer’s shares.

The asset manager owned about 9.2 million shares, or a roughly 13% stake, in GameStop as of Dec. 31, 2020, a regulatory filing showed on Tuesday. (bit.ly/39nfDwv)

Assuming no change in BlackRock’s position, the value of its stake would be worth $2.6 billion now, compared with $173.6 million as of December.

GameStop’s stock has surged nearly 700% in the past two weeks in a rally fueled by interest from amateur investors on Reddit, forcing hedge funds to retreat from heavy losses and sparking calls for scrutiny of the social media-driven trading frenzy.

Trading in the video-game retailer’s shares was halted for volatility nine times on Monday and five times on Tuesday.