businessman Ryan Cohen became a billionaire on Wall Street thanks to Reddit

businessman Ryan Cohen became a billionaire on Wall Street thanks to Reddit

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This week, GameStop actions boosted Wall Street crazy due to a massive purchase by Reddit Commercial. The stock sparked the video game company’s stock, causing heavy losses for some and millionaire profits for others.

This is the case of businessman Ryan Cohen , founder and former CEO of Chewy , an e-commerce for pet supplies. The 35-year-old investor became a billionaire, thanks to stock market moves and the initiative of redditors. His fortune increased to about $ 1.7 billion (about $ 35 billion Mexican pesos).

GameStop Sharing the price soared with collective action of Reddit users , in a forum called ‘Wall Street Bets’ , with over 4.5 million followers. There they organized to buy shares against which hedge funds bet. Shopping lowered GameStop shares from $ 17 on January 1 to $ 469 on January 28 .


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

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

“GameStop needs to evolve into a technology company that delights gamers and offers exceptional digital experiences, not remain a video game retailer that overvalues ​​its physical presence and stumbles into the online ecosystem , “added the former CEO of Chewy .

GameStop Shares increased by more than 800% since Cohen made the observations. Now, the value of your bet is $ 825 million .

To this must be added the 3.4 billion he received in 2017, when he sold his company Chewy for PetSmart . Forbes estimates that the entrepreneur is worth close to $ 1 billion . The investor also won three seats on the GameStop 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 be on the billionaire list, because GameStop stocks are more volatile than ever.

“Gamestop shorts and longs are in a knockout battle waged in the stock market and on social media platforms , “Ihor Dusaniwsky, managing director of S3 Partners, told Forbes on Tuesday.

The expert noted that short sellers who bet against stocks fell about $ 5 billion this year .

“Both parties resist with firm conviction, but in the end, one party will be the absolute winner and in the later rounds of this fight, the big shareholders are well ahead”, Dusaniwsky said.

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The GameStop effect: businessman Ryan Cohen turned multi-million dollar on Wall Street thanks to Reddit
The GameStop effect: businessman Ryan Cohen became a billionaire on Wall Street thanks to Reddit
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