GameStop Can Thank WallStreetBets for Its S&P Credit Upgrade

  • Retailer was able to wipe out long-term debt with equity sale
  • S&P cited that in upgrade and noted new vision for company

A person exits a GameStop Corp. store in San Diego, Calif.

Photographer: Bing Guan/Bloomberg
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The Reddit army’s meme-packed campaign to boost GameStop Corp.’s stock price has now resulted in one of the most conventional victories on Wall Street: a credit-rating upgrade.

Hype on Reddit’s r/WallStreetBets forum drove the once-struggling videogame retailer’s shares so high that the company was able to raise $551 millionBloomberg Terminal last week by selling equity. That allowed GameStop to wipe out all of its long-term debt.