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High school junior buys $50 in GameStop stock, rides Wall Street wave

The Wisconsin teen turned a $50 Christmas gift into much more when he bought GameStop stock this week.

High school junior buys $50 in GameStop stock, rides Wall Street wave

The Wisconsin teen turned a $50 Christmas gift into much more when he bought GameStop stock this week.

THE ACTION. >> I CURRENTLY OWN A FEW SHARES. . REPORTER: BEN PAT TOOK $50 FROM A CHRISTMAS GIFT AND BOUGHT STOCK IN GAME STOP. >> I DECIDED TO BUY IN ON THE HYPE, AND I鈥橫 STILL RIDING THE WAVE. >> A WAVE THAT ROCKED WALL STREET, THANKS TO AMATEUR INVESTORS, NAME STOP STOCK SOARED. WHAT HAPPENED TO THAT MONEY? >> AS OF YESTERDAY, WHEN IT CLOSED OUT $347, I WAS UP ABOUT $600. EARLIER TODAY, I WAS UP ABOUT $1000. TODAY, SOMETHING CRAZY HAPPENED, AND I AM ONLY UP LIKE $300. REPORTER: KNOWN AS SHORTSELLING, INVESTORS BET ON GAME STOP AND OTHER COMPANIES TO TANK. THEY BORROW SHARES TO SELL THEM. IF THE PRICE GOES DOWN, THEY CAN BUY THEM BACK AT A LOWER PRICE AND POCKET THE DIFFERENCE. INSTEAD, THE NOVICE DAY TRADERS MADE THE STOCK SKYROCKET, AND THOSE ON WALL STREET LOST BIG TIME. >> IT WAS SO SATISFYING, BECAUSE THEY ARE LOSING BILLIONS OF DOLLARS. REPORTER: IT WASN鈥橳 JUST GAME STOP, MILWAUKEE HEADPHONE MAKER ALSO SAW A BIG PAYDAY. >> WONDERFUL FOR THEM, TO MAKE A WHOLE BUNCH OF MONEY FOR THEIR CLIENTS. KEEP IN MIND, I DON鈥橳 BELIEVE GAME STOP IS WORTH $400 A SHARE. REPORTER: THE DIRECTOR OF THE INVESTMENT MANAGEMENT PROGRAM EXPECTS THE HIGH STOCK PRICES WILL EVENTUALLY DROP BACK TO REALITY. WHAT SEEMS LIKE A LOT OF PEOPLE GOING AFTER THE BIG GUY OUT WALL STREET, DID THEY SUCCEED? >> I WOULD SAY THEY SUCCEEDED IN SCARING THOSE BETTING AGAINST AMERICA AND BETTING ON STOCKS GOING UP. REPORTER: AS FOR THIS YOUNG MAN, HE IS STILL IN THE GAME. >> I COULD HAVE WALKED AWAY WITH $1000, BUT I BELIEVE THE BEST PART HAS NOT HAPPENED? REPORTER: YOU ARE 16. HOW DO YOU KNOW ABOUT ALL OF THIS? >> I READ IT ON THE INTERNET, ON MULTIPLE WEBSITES. REPORTER: AND APPARENTLY, IT PAID OFF. IN SHOREWOOD, HILLARY MINTZ. JOYCE: ON THE INTERNET. KOSS CORPORATION DID NOT RETURN OUR EMAILS OR PHONE CALLS. GAME STOP ENDED DOWN
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High school junior buys $50 in GameStop stock, rides Wall Street wave

The Wisconsin teen turned a $50 Christmas gift into much more when he bought GameStop stock this week.

A high school junior in Wisconsin turned a $50 Christmas gift into much more when he bought GameStop stock this week."I currently own a few shares," Ben Patte said."I decided to buy in on the hype and I'm still riding the wave," he said.It's a wave that rocked Wall Street.Because of amateur investors like Patte, the retail video gaming store's stock soared."As of yesterday when the stock closed at 340-some dollars, I was $600," he said. "Earlier today, I was at $1,000, but today something crazy happened and I'm only up like $300."Known as short-selling, hedge fund investors bet on GameStop and several other companies to tank in order to make a profit.But instead, the stocks skyrocketed and they lost big time."It was so satisfying because they're losing billions of dollars," Patte said.It wasn't just GameStop getting in on the action, Milwaukee headphone maker Koss Corporation also saw a big payday."Wonderful for them to make a whole bunch of money for their clients, but keep in mind, I don't believe GameStop is worth $400 a share," Kevin Spellman said.He's the director of the investment management program at the University of Wisconsin-Milwaukee and said he expects the high stock prices will eventually drop back to reality."I would say they succeeded in scaring the one that's betting against America, betting on growth, betting on stocks going up," Spellman said.As for Patte, he's still in the game."I could have walked away with $1,000, but I believe the best part hasn't happened," he said. "I read it on the internet on multiple websites."So far, it's paid off.Koss Corporation did not return emails or phone calls for comment.GameStop ended the day down 44%.The Securities and Exchange Commission is now closely watching the market volatility.
SHOREWOOD, Wis. —

A high school junior in Wisconsin turned a $50 Christmas gift into much more when he bought GameStop stock this week.

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"I currently own a few shares," Ben Patte said.

"I decided to buy in on the hype and I'm still riding the wave," he said.

It's a wave that rocked Wall Street.

Because of amateur investors like Patte, the retail video gaming store's stock soared.

"As of yesterday when the stock closed at 340-some dollars, I was $600," he said. "Earlier today, I was at $1,000, but today something crazy happened and I'm only up like $300."

Known as short-selling, hedge fund investors bet on GameStop and several other companies to tank in order to make a profit.

But instead, the stocks skyrocketed and they lost big time.

"It was so satisfying because they're losing billions of dollars," Patte said.

It wasn't just GameStop getting in on the action, Milwaukee headphone maker Koss Corporation also saw a big payday.

"Wonderful for them to make a whole bunch of money for their clients, but keep in mind, I don't believe GameStop is worth $400 a share," Kevin Spellman said.

He's the director of the investment management program at the University of Wisconsin-Milwaukee and said he expects the high stock prices will eventually drop back to reality.

"I would say they succeeded in scaring the one that's betting against America, betting on growth, betting on stocks going up," Spellman said.

As for Patte, he's still in the game.

"I could have walked away with $1,000, but I believe the best part hasn't happened," he said. "I read it on the internet on multiple websites."

So far, it's paid off.

Koss Corporation did not return emails or phone calls for comment.

GameStop ended the day down 44%.

The Securities and Exchange Commission is now closely watching the market volatility.