Many community members are angry at big investors' behavior over the past decade, be it when many were bailed out during the financial crisis, or watching them make even more money as people suffer during the coronavirus pandemic.Īs GameStop's stock's withered, r/WallStreetBets traders have been posting that their fight against Wall Street isn't over and that, in fact, the stock will likely jump again on the backs of Wall Street's still bad bets. He'd been watching WallStreetBets forums for a year and a half and seen community members take "insane" positions in the market, throwing all their money into a position that sometimes wins big and sometimes loses even worse.īut the fight against Wall Street is different, he said. "It's become political," said Derek Horstmeyer, a professor of finance at George Mason University. While some of them say they believe in GameStop's future, others are attracted to the idea that the higher GameStop's shares go, the more Wall Street's bad bets will cost institutional investors money. What makes this roller coaster unusual is why the Reddit community is buying up GameStop shares. Shares rose slightly on Tuesday to close at $92.41, which is still down more than 80% from their highs last week. Since then, GameStop's shares have been swinging wildly, going from about $17 at the start of the year to $483 last week and then to $90 by the close of Monday's trading. When people in the Reddit community r/WallStreetBets began pushing up GameStop's share price, establishment investors started losing billions and billions of dollars. Wall Street bet against GameStop so much and for so long that at times it was one of the most heavily bet-against stocks on the market. A bunch of Reddit users bought up shares of struggling video game retailer GameStop, taking on Wall Street investors who'd bet the company would fail. For a while, the little guy was on a roll.
0 Comments
Leave a Reply. |