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 the Reddit stock phenomenon here to stay?
· How did the Reddit stock market rally happen and why did it start to fizzle on Thursday? ... you buy the stock for $15 each and sell at the market price. ... and BlackBerry Ltd. happened to be one ...
Should you invest $100 in Reddit stocks?
Stock market had a bad day, what do you think will happen tomorrow. DJIA took a 1000+ points the future market a fter closing suggest the market is not settled Thurs May 19, 2022 SP500 future was down (-0.4%) while -0.63 % was from Nasdaq.
What is/R/stockmarket?
· Shares of the new WSB plaything were up more than 200% Wednesday after members of the Reddit board and investors on Robinhood were touting the stock. The hashtag #SaveAMC was trending on Twitter....
Why did GameStop stock drop so much?
GOOD NEWS 🥰🥰🥰 we have new BIG INVESTOR HEDGE FUND recently filed owning 79 million plus of MM shares... I wonder how they got this number of shares who sold them we will know in the coming months... Good news is we are STARTING TO ATTRACT hedge fund coming in and more will come as we are expecting SAFE BANKING ACT pass even if the ...
What did Reddit do to the GameStop stock?
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.
How did Reddit stock break?
The stock market fell hard because of a large group of people that used social media to reach out and boost GameStop stocks up. A small group of Redditors shifted the tide of Wall Street against hedge funds. Investing in stocks merits a great reward, albeit with a risk of failure.
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.
What happened with Reddit GameStop and Robinhood?
Popular investing app Robinhood became the focus of the controversy after it decided to freeze trades for GameStop on Jan. 28. Shares of the video game retailer spiked after traders on Reddit began frantically buying the company's stock. GameStop shares have since came crashing down only to shoot up once again.
Why did Redditors Buy GameStop?
Motives behind this onslaught ranged from making personal profit to a desire to squeeze the short positions of hedge funds. Prompted by the information posted on social media retail investors began buying these so called “meme-stocks” including GameStop, AMC Entertainment, Blackberry, and Nokia.
What did WallStreetBets do to GameStop?
When GameStop's stock skyrocketed in January 2021, it caught Wall Street investors by surprise. A group on the Reddit forum WallStreetBets had coordinated stock buys to bolster the fading videogame retailer's stock price. Watch as the reporters who drove the coverage discuss this moment in investing history.
Can you buy Reddit stock?
Reddit is currently a privately held company, so its stock does not trade on any public exchange. You may be able to buy pre-IPO shares on private share marketplaces, but availability is uncertain and there may be qualifications.
Is Reddit public yet?
No, Reddit is yet to go public so it remains a private company for now. Thanks for your interest in our application. Please leave your information below to get early access.
Is Reddit going to IPO?
This time, Reddit attracted attention from the Securities and Exchange Commission (“SEC”) by filing a confidential initial public offering (“IPO”) on December 15, 2021. (Id.; Reddit Announcements). Reddit's valuation stands at approximately $10 billion after its most recent funding round garnered $700 million.
Why is Robinhood in trouble?
The trading platform, which just reported billions in losses for 2021, is still contending with lawsuits, trading restrictions and regulatory scrutiny.
Why did Robinhood Stop selling GameStop stock?
Robinhood said in a blog post published at the end of January said that it, too, suspended trading in GME and other securities due to clearing firm costs.
Is it legal for Robinhood to restrict trading?
And Robinhood's user agreement clearly states it “may at any time, in its sole discretion and without prior notice to [users], prohibit or restrict [users] ability to trade securities.” While some users are likely to be mad as a result of the sudden restrictions, the user agreement clearly states that Robinhood was ...
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.
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 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.
Who bought GameStop?
Last summer, Ryan Cohen, who grew and then sold online pet-food retailer Chewy, bought 13 per cent of GameStop and hoped to help management pivot into e-commerce. The stock quadrupled in four months, and that attracted short-sellers.
The cast of characters
Who’s the monster and who’s the hero, in this case, depends entirely on your perspective.
Why GameStop?
The popular Reddit page WallStreetBets is fond of targeting short-sellers. If you’ve ever played craps, these are the guys betting against the table, and their tactics, while often lucrative, have burnished their reputation as bloodsuckers and other, unpublishable, names. (More on that later.)
Not just GameStop
A similar story was playing out with shares of AMC, the movie theater chain that’s been devastated by the pandemic.
Why is this happening now?
The way people trade stocks has been upended by the rise of no-fee apps like Robinhood. That technology has democratized investing, giving armchair investors far removed from traditional banks free access to sophisticated trading instruments, like options.
Fueling the fire
WallStreetBets, which has more than 2 million followers, is littered with posts cheering the stock gains and no small amount of righteous indignation.
What is Biden expected to sign?
President Biden is expected to sign an executive agreement ordering the Federal Trade Commission to limit or ban noncompete agreements, unnecessary occupational licenses, and revise guidance for sharing wage information between the HR department and workers and other employers.
Can you post stock on /r/stocks?
Almost any post related to stocks is welcome on /r/stocks. Don't hesitate to tell us about a ticker we should know about, but read the sidebar rules before you post. Check out our wiki and Discord!
Where is the Tesla Solar neighborhood?
The companies said the provisionally named SunHouse at Easton Park in Austin, Texas, would be the first Tesla Solar neighborhood.
Is active management bad?
Active management is bad and it’s getting worse. Every year, S&P Dow Jones Indices does a study on active versus passive management. Last year, they found that after 10 years, 85% of large-cap funds underperformed the S&P 500, and after 15 years, nearly 92 percent are trailing the index.
Who was the owner of the Mets that bailed out Melvin?
Steve Cohen, the recent owner of the Mets, was called in to bail out Melvin to the tune of nearly $3 billion. Again, it’s the combination of the absurd Reddit-ese of stonks and the Schadenfreude of one rich man finally getting pinched that makes this story so weird and appealing. Y’all just be saying anything.
Does the internet make lone wolf types?
— has often held that the internet has made the levers of power accessible to lone-wolf types. (Yes, I am thinking, as I often do, of Blackhat, in which a rogue hacker sends up soy futures and sends the global economy into a tailspin.)
Is fundamentals more important than stock market surges?
No, not really . As any smart investor will tell you, a company’s fundamentals are a lot more important than any momentary stock-market surges or crazes. But then again, a lot of the short sellers weren’t necessarily looking at the company’s fundamentals either.
Why did Geo Group get hammered?
Yet, for the first few months, it appeared those more bearish were correct. Geo Group got hammered, mainly due to it suspending its dividend to conserve cash. But, starting this month, it seems like Reddit has made it one of its next short-squeeze targets. This resulted in shares popping from around $5.25 per share to nearly $9 per share before partially pulling back in recent days.
What is the main therapy in the pipeline?
The main therapy in its pipeline? Its IRX-2 cytokine therapy for the treatment of head and neck cancer. According to its May 2021 investor presentation, this therapy is currently in Phase 2b trials. Recently, the company has moved into mRNA-based gene-editing and cell therapies as well. This portion of its timeline may be more years in the making. Yet, progress in this area could also produce a short-term boost for the stock.
Is AHT a REIT?
AHT stock was a hotel REIT (real estate investment trust), hit hard by last year’s Covid-19 shutdowns. It avoided having to file for Chapter 11 bankruptcy. But it would’ve had to if it had failed to negotiate forbearance from its lenders. Yet, in the past month, Reddit traders have piled back in, sending it up 69%, to around $5.42 per share.
Is Reddit stock high risk?
These Reddit stocks are high-risk, but they could also be high-reward. It may not last forever. But, the Reddit stocks phenomenon is here to stay for now. It may go against the philosophy of investing legends like Warren Buffett.
Who recommended Dogecoin before it soared?
Thomas Yeung is an expert when it comes to finding fast-paced growth opportunities on Reddit. He recommended Dogecoin before it skyrocketed over 8,000%, Ripple before it flew up more than 480% and Cardano before it soared 460%. Now, in a new report, he’s naming 17 of his favorite Reddit penny stocks.
Is Pubmatic back to valuation?
The reason? As a Motley Fool commentator recently discussed, shares got way ahead of themselves earlier this year. With its big declines, PubMatic is now back to a valuation more in line with its long-term prospects. But, related to this beat-down based on valuation has been the fact that it’s become a crowded trade among the short-seller community.
Is it wise to risk money?
Obviously, it’s not wise to risk money you can’t afford to lose. That is, don’t risk permanently damaging your financial future just because a stock seemed primed for a short-squeeze. Or, because it’s trending on r/WallStreetBets. Yet, you don’t have to necessarily “bet the ranch” to profit from this sometimes logic-defying investing phenomenon.
