An army of amateur traders loosely organizing on Reddit have shaken up all preconceived notions about the stock market as they fueled the meteoric rise of GameStop stock. Shares for GameStop, the electronics retailer that has largely struggled in recent years, have skyrocketed by nearly 2,000% since the beginning of the year.
Is Reddit trading leading to'massive market manipulation'?
Jan 29, 2021 · If it trades to $30, you buy the stock for $15 each and sell at the market price. In recent years, options have exploded in popularity on …
What is/R/stockmarket?
Jan 28, 2021 · He added that he respects the market and has "respect for the people on the Wall Street Bets and on Reddit message boards." Ultimately, Galloway said, the newfound power of these everyday ...
Will Reddit-fueled trading party hurt individual investors?
Jan 27, 2021 · Shares in GameStop ticked up on Jan. 11 after it named three people to its board of directors as part of a deal with shareholders who had been agitating for change. That caused some short sellers ...
Will the stock market ever correct itself?
Jan 27, 2021 · But the stock market was the single biggest news story Wednesday, financial or otherwise, due to a group of Reddit shitlords pumping up a collection of stocks and pushing some billion-dollar...
How did Reddit make GameStop stock rise?
In late January, a band of Reddit-obsessed retail traders coordinated trades on heavily shorted stocks, created a massive short squeeze in GameStop, whose shares surged 400% at one point. The brick-and-mortar retailer traded at less than $20 a share at the start of 2021.Apr 26, 2021
How did Reddit stock market crash?
After several big hedge funds bet against GameStop stock, essentially meaning that they would profit from GameStop's failure, a group from Reddit called WallStreetBets took to buying stocks in order to keep GameStop afloat.Feb 12, 2021
Did Reddit almost crash the market?
Day-Trading Reddit Users Nearly Crashed the Stock Market. Now They're the Organizing Principle for a New ETF. Barron's.Mar 3, 2021
What stocks are being affected by Reddit?
Reddit Stocks That Are Getting CrushedCoinbase Global, Inc. (NASDAQ:COIN)BlackBerry Limited (NYSE:BB)SoFi Technologies, Inc. (NASDAQ:SOFI)Palantir Technologies Inc. (NYSE:PLTR)Boxlight Corporation (NASDAQ:BOXL)Apr 2, 2022
When did Reddit crash the stock market?
The page r/WallStreetBets, which had encouraged investors to bid on GameStop shares and led to billions of dollars of losses for the stock's short-sellers, could not load for some users the morning of January 27. DownDetector had more than 3,000 reports of problems accessing the site between 9:30 a.m. and 10 a.m. EST.Jan 27, 2021
Why did GameStop rise?
GameStop shares skyrocketed in January as retail investors, urged on by popular Reddit forum WallStreetBets, bought the stock as a way to punish hedge funds that had taken an outsized short bet against it.Feb 26, 2021
Did WallStreetBets crash the market?
Wall Street Bets, the Reddit forum that coordinated the massive surge in GameStop's stock, is defiant even as the price crashes. Wall Street Bets members drove up GameStop's stock price in January, disrupting major hedge funds. The share price reached a high of $483 on Thursday, but since then it has crashed.Feb 3, 2021
Did GameStop almost crash the market?
Shares of GameStop plunged 32% Wednesday after lukewarm earnings that met analysts' expectations, wiping out more than $4.5 billion from the firm's market capitalization, which ended Wednesday at $8.1 billion.Mar 24, 2021
What is the meme economy?
A Brief History of the Meme Market The Know Your Meme definition is instructive: “[The] Meme Economy is a satirical concept and internet subculture in which memes are discussed in the jargons of the financial industry, as if they are commodities or capital assets with fluctuating values.”Aug 23, 2021
Is Reddit on the stock market?
Social media platform Reddit has announced that it has started the process to sell its shares on the stock market.Dec 16, 2021
How does Reddit make money?
The company generates revenue through advertising and an ad-free premium membership plan. Reddit operates in the application-software segment of the technology industry, providing software that allows users to share media content.Mar 21, 2021
What should I invest in Reddit 2021?
Reddit Stocks that Tripled in 2021GameStop Corp. (NYSE:GME) Number of Hedge Fund Holders: 9. ... AMC Entertainment Holdings, Inc. (NYSE:AMC) Number of Hedge Fund Holders: 17. ... Upstart Holdings, Inc. (NASDAQ:UPST) Number of Hedge Fund Holders: 23. ... Avis Budget Group, Inc. (NASDAQ:CAR) ... Hut 8 Mining Corp. (NASDAQ:HUT)Nov 28, 2021
Why is short selling risky?
If it rises, they have to repurchase the shares they borrowed and then sold for a higher price, which will make them lose money. This squeeze happens often, which is why short-selling can be risky.
What is a stock investor?
Plain and simple, they are investors who bet against a stock, hoping the price will fall. To do this, they borrow shares from someone who plans to stay invested for a long time, and then they sell the shares. After the stock price falls, they repurchase the shares at a lower price and return them to the lender.
What is market integrity?
Market integrity, as it’s known, is something regulators have to take seriously. If too many people lose faith in the market, they could stop investing, and that would prevent companies from selling shares to fund their growth. But we’re far from that. So far, these are pockets of volatility.
How does short selling work?
A short seller borrows shares of a stock and sells these borrowed shares to buyers willing to pay the market price. As the stock price falls, the trader would buy it back for less money, pocketing the difference.
Options supercharging the squeeze
Many avid Reddit posters hyping up GameStop are buying call options, a type of derivative contracts that give the holder the right to buy the underlying security at a stated price within a specific timeframe. The call options contract values can surge by even larger magnitudes when the underlying stock is rallying by 100% in a single day.
Why did Gamestop stock go up?
Shares in GameStop ticked up on Jan. 11 after it named three people to its board of directors as part of a deal with shareholders who had been agitating for change. That caused some short sellers to abandon their positions, helping to drive the stock up more in the following days.
Why are short sellers risky?
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. Because short sellers — frequently hedge funds — in essence are betting against a company's success, it can be a risky position.
What is WSB in Reddit?
The internet has been used to prognosticate about stocks for decades, but there's never been anything quite like the Reddit community called r/wallstreetbets, also known as WSB. WSB takes something of an internet extremist's approach to investing.
What is short selling on GameStop?
Like many companies that are in rough shape, GameStop was the subject of what's called short selling, in which professional investors borrow shares of stock to sell and then buy back later so they can return them, which lets them pocket the profit if the stock price goes down. They're basically bets that the company will fail.
Does Reddit allow illegal content?
Reddit didn't answer questions Wednesday about whether it's in touch with regulators, but it said it prohibits posting illegal content or facilitating illegal transactions. "We will review and cooperate with valid law enforcement investigations or actions as needed," Reddit said in a statement.
Does BlackRock have mutual funds?
BlackRock, which operates mutual funds, may have made billions of dollars from the rise in GameStop shares alone. But the bigger and longer-lasting impact may be on how the market itself operates. Never before has a group of amateur investors taken on a hedge fund like this and won.
Can Volkswagen stock go up forever?
History suggests that no stock can go up forever, and over time, stock prices generally reflect the expected future earnings of corporations. But long shots can go on for extended ...
What does it mean when a stock is above $8?
If the stock price is above that $8 threshold, however, the options are in the money, meaning they have intrinsic value. This content is imported from Twitter. You may be able to find the same content in another format, or you may be able to find more information, at their web site.
What is the problem with Melvin?
The real problem for Melvin is that it was also shorting GameStop, meaning it was borrowing shares of GameStop, selling them on the market and using those proceeds to make other investments. Problem is, Melvin eventually has to return those GameStop shares.
