GameStop, the new Fortune 500! Social media unleashes the memes as the ‘Wolves of Reddit’ send Wall Street into panic
- Folks took to Twitter to share their fascination with the spectacle surrounding GameStop, AMC Entertainment and others
- ‘GameStop sitting amongst Tesla and Amazon after reddit users make it a Fortune 500 company,’ said one person, showing a meme of Big Bird
- Many took the chance to crack at hedge fund billionaires and those trying to stop the Average Joes from making a quick buck
- There were some people who even wanted to make sure that they didn’t miss out on the next big underdog stock craze.
- Investors have been on a GameStop buying spree, which not only pushes up the shares but puts pressure on short sellers to make purchases to ‘cover’ their bets
- GameStop surged 18 percent on Monday, another 115 percent Tuesday and had leapt 135 percent Wednesday
Days after GameStop soared in the stocks thanks to the ‘Wolves of Reddit’ and people are still getting their laughs off on social media.
Investors have been on a GameStop buying spree, which not only pushes up the shares but puts pressure on short sellers to make purchases to ‘cover’ their bets to avoid steeper losses.
This is known on Wall Street as a ‘short squeeze’ and can result in a dizzying rally by forcing short sellers into becoming buyers.
As a result, GameStop surged 18 percent on Monday, another 115 percent Tuesday and had leapt 135 percent Wednesday. That followed a stunning 50 percent jump on Friday.
GameStop stock has rocketed from below $20 earlier this month to close around $350 Wednesday as a volunteer army of investors on social media challenged big institutions who had placed market bets that the stock would fall. The action was even wilder Thursday: The stock swung between $112 and $483 before closing down 43.2% at $197.44
Folks took to Twitter to share their fascination with the spectacle surrounding GameStop, AMC Entertainment and others
Folks took to Twitter to share their fascination with the spectacle surrounding GameStop, AMC Entertainment and others.
‘GameStop sitting amongst Tesla and Amazon after reddit users make it a Fortune 500 company,’ said one person, showing a meme of Big Bird in an office meeting.
Many took the chance to crack at hedge fund billionaires and those trying to stop the Average Joes from making a quick buck.
There were some people who even wanted to make sure that they didn’t miss out on the next big underdog stock craze.
Several users highlighted the moment when GameStop would become a Fortune 500/S&P 500
‘I’m mad I wasn’t told the tea about GameStop when it was low,’ said one user. ‘What stocks we investing in next? I refuse to be left out TWICE.’
The extreme volatility in surges for GameStop has raised concerns about manipulation, which could lead to an investigation by stock market regulators, and has even drawn attention from the White House.
Late Wednesday, the Securities and Exchange Commission said it was monitoring the activity.
GameStop shares plunged on Thursday after trading app Robinhood restricted purchases.
Many took the chance to crack at hedge fund billionaires and those trying to stop the Average Joes from making a quick buck
There were some people who even wanted to make sure that they didn’t miss out on the next big underdog stock craze
GOP Senator Ted Cruz and Democrat Squad member Alexandra Ocasio-Cortez have both called for investigations and criticized Robinhood for shutting down trades while hedge funds are still free to buy and sell stocks as they please.
The war began last week when famed hedge fund short seller Andrew Left of Citron Capital bet against GameStop and was met with a barrage of retail traders betting the other way.
He said on Wednesday he had abandoned the bet.
The Redditers have taken advantage of a process called ‘short selling’, which effectively reverses the way the stock market traditionally works.
Instead of buying a stock in the hope company does well and the price goes up, then selling for a profit, shorting involves betting against a stock in the hope the value goes down, and then pocketing a share of the difference.
