Quite recently news broke out that a US stock trader essentially bet $400 million against Nintendo by short-selling the company’s stock. Gabriel Plotkin, the US trader in question, believed that Nintendo stock would continue to fall, especially in light of recent times where it seems that Nintendo stock has been on a steady decline ever since what some would call an uneventful E3 showing.
Gabriel Plotkin basically borrowed and sold $400 million in shares thinking he would be able to repurchase the shares after a stock drop, which would have put more money in his pocket.
Yesterday we reported that Nintendo had released their financial statement to the world which in turn sent their stock value climbing up by almost 7 percent. Bloomberg reported that Gabriel Plotkin’s hedge fund, Melvin Capital Management, will have resulted “in paper losses of as much as $27 million from Wednesday’s share surge” for the hedge fund that oversees about $7 billion.
If history is any indication there has always been one thing that is certain, NEVER bet against Nintendo. Hopefully this guy learned his lesson.
SourceCode, aka Lucas Hughes, is the creator/owner of Nintendo Playroom. He spends his days primarily as a husband/father/programmer/gamer. He loves all things Nintendo and is very passionate about the Nintendo community.