Reddit isn’t just the home of dank memes and cute animal photos, it’s also the place where groups gather to enjoy a specialized hobby. In the case of subreddit “WallStreetBets,” the hot topic is stocks and option trading. Video game retailer GameStop stock (GME) is the latest target of the group, with the vast number of users impacting the stock price in a big way.
How did Reddit’s WallStreetBets increase the GameStop stock price?
WallSteetBets increased the GameStop stock price by competing with Wall Street buyers to inflate the figures. The sheer demand for the stock has sent the price skyrocketing.
GameStop itself reported a decrease in sales during the 2020 holiday period when compared to 2019. Video game brick-and-mortar stores aren’t suddenly making an epic comeback. Instead, it’s the war between Redditors and Wall Street giving the stock price a boost.
What initially started as Wall Street short sellers ditching what they thought to be overvalued stock to make a reasonable profit before the price dropped, quickly turned into opportunistic r/WallStreetBets members spotting the sales and making the stock price rise.
At the time of writing, GameStop (GME) stock’s highest price reached $144.59. It’s started to drop throughout the day, but the publicized battle of r/WallStreetBets and Wall Street may cause more shocks throughout the day and week ahead.
As technology evolves, there will no doubt be more unexpected factors impacting the workings of Wall Street.
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