gamestop stock, reddit explained

Remember how we said AMC Theatres is one of the other companies that has been targeted by short sellers? Panda Express fast-food workers allegedly pressured to strip... McDonald says customers can expect more from RSPCA-approved ... European Union will introduce carbon levy on imports from Au... $30 million Powerball jackpot on Thursday winning numbers. Because short sellers — frequently hedge funds — in essence are betting against a company's success, it can be a risky position. Gotta admit it’s really something to see Wall Streeters with a long history of treating our economy as a casino complain about a message board of posters also treating the market as a casino. All times AEDT (GMT +11). AMC shares were up by 265 percent Wednesday. Let’s take it one thing at a time. GameStop stock is on the rise, and a Reddit group called WallStreetBets is at the heart of an unusual meteoritic rise in price. GameStop shares may move by about 20 percent a day through March if options trades are an indication, Barron's reported. The battle over GameStop has taken on something of a David vs. Goliath feel, with some people outside of finance painting it as a reckoning for parts of Wall Street. There’s no doubt GameStop’s share value will drop significantly. Picture: Hannibal Hanschke / Pool / AFPSource:AFP. Well, WSB and now other amateur investors are going after those short positions, hoping to induce a similar short squeeze. "CAN'T STOP WON'T STOP GAMESTOP," a person wrote Jan. 14, along with a clip from the movie "The Wolf of Wall Street.". An Elon Musk tweet helped to pump billions into the GameStop’s stock value. “A retail trader will not lean on Wall Street to manage their money and I definitely now see an antagonistic relationship between the old guard (Wall Street) and individual traders who are on the rise.”. In the case of GameStop, chatter on massive online trading forums invigorated interest in buying the stock, pushing up the price, which in turn fueled more interest. Reddit users were looking to stick it to the “fat cats” of Wall Street. "100% of my portfolio on GME because of you idiots," a person posted Jan. 10. Related: GameStop Stock Price Explained: What Exactly Is Going On? “This is unnatural, insane, and dangerous.”. GameStop shares would go from trading at around $43 (already significantly more than it traded at at the beginning of the year) to as much as $380, becoming one of the most traded stocks on the market along the way. One big hedge fund, Melvin Capital, needed a bailout as GameStop stock spiked but denied it was facing bankruptcy. GameStop has become the battlefield of Reddit vs. Wall Street, with titanic sums being made and lost. Let’s dig into how the posters became the wolves. GameStop stock is on the rise, and a Reddit group called WallStreetBets is at the heart of an unusual meteoritic rise in price. GameStop shares are soon to coming crashing down. Stephanie Ruhle, Jo Ling Kent, Ezra Kaplan and Jason Abbruzzese, GameStop stock frenzy has Wall Street buzzing: What it means to you, GameStop at the center of a Wall Street tug-of-war, the unofficial stock trading platform of choice for WSB, named three people to its board of directors, overly exuberant and inflate stock prices. Over the long term, a stock's price tends to track with the company's profits, and GameStop's prospects for earnings remain cloudy. In this video I talk about the latest news involving GameStop stocks, short selling, Reddit - WallStreetBets, Robinhood and MORE! Source: YouTubeSource:YouTube. He believes that GameStop’s trading needs “regulatory intervention” and an “example” needs to be made of GameStop to prevent similar occurrences. Once the stock has dropped, a short position can be “covered” by buying the stock back and returning it to the lender in question. They bought up stock before it could drop in price and rapidly inflated its value. Here's a guide to understanding why and what the frenzy means for the stock market. This is something to believe in," he said. Are you following? The speculative trading left short sellers with no more shares to buy to cover their positions, creating a short squeeze and leaving them with millions of dollars in stocks they had bought at a high price but which they then had to offload at an even higher price. WHY GAMESTOP? Massachusetts regulator William Galvin compared the situation Wednesday to the 1999 tech stock bubble. Social Sharing CNBC data show that the volume of shares traded — a closely watched indicator of activity around the stock — spiked on Friday. To help explain the GameStop stock situation, Reddit user u/Double_Gunz has recreated the situation using Super Smash Bros. As the price of the shares rose, more WSB posters jumped on board. There's no evidence that any of this is illegal, although Nasdaq CEO Adena Friedman has said stock exchanges and regulators need to pay attention to the potential for schemes fueled by social media. is an initial public offering. Posting a link to the GameStop Reddit thread, he wrote "Gamestonk!!". The GameStop stock rally is the handiwork of r/WallStreetBets, a Reddit community where people share news, memes and personal anecdotes about playing the stock market. They're basically bets that the company will fail. The stock … A retailer has become the pawn in a game of cat-and-mouse between individuals and wealthy financiers. The stock—which closed at $64.75 at the end of the week—peaked at almost $120, and when Tuesday came to an end, GameSpot shares were sitting at around $146, and the Reddit user responsible for sparking the surge had turned the $50K he’d put on the line into over $22 million. Hey all! Lucy Bayly is the business editor for NBC News. GameStop? An anonymous post on Reddit … How GameStop Stock Became Hedge Fund's Worst Nightmare After a Reddit-Driven Frenzy Explained. GME share price explained: Why GameStop stock value has increased again a month after Reddit ‘short squeeze’ The stock closed at $246.90 on Monday, its … And the enthusiasm was still spreading to other well-known consumer brands. It’s okay, I was too. Then there was New York congresswoman Alexandria Ocasio Cortez who called on the rich to be taxed in a series of tweets. An anonymous post on Reddit … Other companies on the list include AMC Theatres, Bed Bath & Beyond and even the mostly defunct Blockbuster. History suggests that no stock can go up forever, and over time, stock prices generally reflect the expected future earnings of corporations. In what seems like a modern day twist to the Robin Hood story — a gaming company’s stocks have become a batteground between the rich and the poor with Reddit users attempting to bankrupt hedge fund managers. The post Gamestop Explained: How Reddit investors took on Wall Street hedge funds appeared first on CityAM. That may serve as a check or balance on other large forces, such as hedge funds, which are used to throwing their weight around without ordinary investors affecting a price. There is some belief that WSB signals the arrival of a powerful new force as large numbers of retail investors find influence by acting in concert or following one another into a big trade. Galvin said he believed federal regulators would take some action. GameStop continues its wild Wall Street ride with a dizzying climb seemingly powered by online chatter about the struggling video game retailer with a devoted fan base. Over the long term, a stock's price tends to track with the company's profits, and GameStop's prospects for earnings remain cloudy. And at least on paper, ordinary investors are making money even if they're not paying attention. Over the long term, a stock's price tends to track with the company's profits, and GameStop's prospects for earnings remain cloudy. Nationwide News Pty Limited Copyright © 2021. with a link to WSB. WSB takes something of an internet extremist's approach to investing. US company GameStop is a brick-and-mortar video game retailer that has been struggling with profits due to store closures, decline in physical sales and the COVID-19 pandemic. Yes. The past few days in GameStop, Reddit, and the stock market, explained Pedestrians pass a GameStop store on 14th Street at Union Square, on Jan. 28, 2021, in the Manhattan borough of New York. But GameStop is not the only innocent player being used in this game of fat cat and mouse. Trading was actually halted on GameStop shares nine times on Monday and three times on Tuesday due to the volatility. There's also Robinhood, the app that is the unofficial stock trading platform of choice for WSB. If that doesn't happen and the stock price rises, short sellers are forced to cover their positions or buy more stocks — to minimize their losses. That's a tough question. On Friday afternoon, trading of GameStop stock was abruptly halted after it saw a Reddit-fueled surge in trading. Mike Novogratz, an investor and former hedge fund manager, said the internet activity is the result of frustration that everyday investors are often locked out of lucrative opportunities, such as initial public stock offerings. The past few days in GameStop, Reddit, and the stock market, explained D’Amore-McKim researchers explain how a group of Reddit investors drove up the falling value of GameStop’s stock. Over the long term, a stock's price tends to track with the company's profits, and GameStop's prospects for earnings remain cloudy. Over the long term, a stock's price tends to track with the company's profits, and GameStop's prospects for earnings remain cloudy. GameStop was one of the most shorted of all publicly traded companies. GameStop and Reddit have taken over the financial world but many are confused about the details of the story. The more complex answer is that its stock has become the central game piece in a financial power struggle between a major hedge fund, Melvin Capital, and a group of amateur stock traders who yell on the internet. In this case, thousands of redditors on r/WallStreetBets and other communities identified something strange: more shares of GameStop had been shorted than existed. At one stage its stock was priced higher than Apple, Facebook, Microsoft and Disney, as it surged by 93 per cent with its shares climbing above $US300 ($A393). Ryan Cohen, founder of pet food company Chewy, who recently joined the GameStop board had noted that the company was one of the most shorted stocks after be bought a large amount of shares in August 2020. The simplest answer is that its stock price has skyrocketed — by somewhere around 8,000 percent over six months. ... How Reddit (and GameStop) changed finance: In this video I talk about the latest news involving GameStop stocks, short selling, Reddit - WallStreetBets, Robinhood and MORE! American stock markets are in a lather. The stock—which closed at $64.75 at the end of the week—peaked at almost $120, and when Tuesday came to an end, GameSpot shares were sitting at around $146, and the Reddit user responsible for sparking the surge had turned the $50K he’d put on the line into over $22 million. ", Gotta admit it’s really something to see Wall Streeters with a long history of treating our economy as a casino complain about a message board of posters also treating the market as a casino, Or, as Reddit co-founder Alexis Ohanian put it on Twitter, the GameStop squeeze is "the public doing what they feel has been done to them by institutions.". Stock market? Over the long term, a stock's price tends to track with the company's profits, and GameStop's prospects for earnings remain cloudy.