Posted on Jan 29, 2021
How GameStop’s stock grew tenfold from a fight between Reddit users and Wall Street bankers
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Video game retailer GameStop’s stock price has increased dramatically due to the actions of users on the WallStreetBets subreddit.
The Reddit users pushed the stock up from $20 on 11 January to a staggering high of $146.97.
The general reason for this is because the stock market is subject to wild speculation that can deem companies like Tesla, for example, more valuable than the nine largest automakers combined.
The more specific reason is that the company found itself as the central catalyst in a battle between short-sellers and online traders.
The Reddit users pushed the stock up from $20 on 11 January to a staggering high of $146.97.
The general reason for this is because the stock market is subject to wild speculation that can deem companies like Tesla, for example, more valuable than the nine largest automakers combined.
The more specific reason is that the company found itself as the central catalyst in a battle between short-sellers and online traders.
How GameStop’s stock grew tenfold from a fight between Reddit users and Wall Street bankers
Posted from independent.co.uk
Video Games
Investing
Stock Market
Stock Trading
Posted 4 y ago
Responses: 2
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unless there is an intervention on a Godzilla type scale, that would throw an already volatile situation into further Chaos, Melvin is doomed. The filthy rich have been manipulating the market for years with short selling. There are already whispers trying to frame this as an alt right attack on the market.
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SSG Robert Perrotto
MSgt Steve Sweeney - WSB also had their discord server shut down, when , the day after this blew up, their server had 200k new subs, and someone made a bot that started spamming racist and hateful things at 4 am in the morning, and then pointed to it to say they were a hate group and alt right white supremacists on twitter, which gained 200k likes and retweets.
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SSG Robert Perrotto
MSgt Steve Sweeney - um - that is why I said "whispers trying to frame". What occured was a group of people savvy with how the market works on a reddit board saw the Melvin (the hedge fund), was going to short gamestop stock, betting on the stock dropping in order to make a boatload of cash, and at the same time, bankrupt Gamestop. This happens quite a lot. So when Melvin started to sell the stock, the reddit group bought it, others saw what was happening, and joined in, driving the price of the stock up, essentially, melvin gambled, and got caught with their pants at their ankles. Melvin has to buy back those shares, because they owe those shares to someone(s) else, who will also get screwed by this. The grey area is by so many people joining in, they created a speculative bubble, which has to burst. Those that bought in when the shares were high, might also be holding the bag as the stock inevitably crashes. in this instance though, It is more likely the people who bought high, knew they were going to lose their money, but felt that it was worth it to have the rich lose billions, compared to their hundreds.
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