So...something interesting has happened with GameStop's stock, all because a bunch of folks on Reddit decided to have some fun with investments.
Yep, GameStop. The video game store you were only allowed in on special occasions.
Here's the briefest of explainers: About a year ago, after many years of steady decline, GameStop was not doing well and their stock was super low. Then, they hired some new board members and the stock went up. Institutional investors (aka hedge funds) observing the phenomenon decided to "short" GameStop stocks to make a lot of money when it failed.
But Reddit group r/wallstreetbets said, "Not today."
@samvazza @bigblackjacobin @BethLynch2020 shorting a stock basically is betting that a stock will do poorly. this hedge fund shorted GameStop stocks. then a group on Reddit caught wind of their scheme and started buying GameStop stocks like crazy, inflating the price of the stock so this fund lost all all its money
Here's a longer, detailed explanation if you really want to know the whole deal.
Anyway, thanks to the efforts of these folks on the internet, GameStop's stock has gone up A LOT in very little time.
This is truly the wildest thing I’ve ever seen in my life! GameStop stock up over 200% on the day 😂 $GME
And, naturally, Twitter had lots of jokes about the whole affair.
1.
bunch of dudes on reddit joined together to raise gamestop's stock price 150% just cuz and u want me to believe the stock market isnt just straight men's astrology
2.
Just to let y’all know, people on Reddit are buying lots of shares in GameStop to raise the price of the stock. Doing this will make billionaires who bet GameStop stock would fall lose a ton of money and it’s the most beautiful thing I’ve ever seen.
3.
Very thankful that I invested $100 worth of GameStop stocks last year as a joke
4.
Me and everyone else wishing we bought an ass ton of GameStop stock when it was almost worthless a few months ago
5.
The idea of buying GameStop stock and selling it a few hours later at a fraction of the price is the most GameStop shit imaginable.
6.
I have officially recovered all the money @GameStop robbed from me as a child off of their stock.
7.
The owner of Gamestop right now seeing their stock go up somehow
8.
I look forward to the economics textbook chapter about Game Stop stock.
9.
Me watching my GameStop stock go up when I got it for free on Robinhood 😌
10.
Bitcoin is so 2020. GameStop is the new store of value.
11.
Her: How did you become a billionaire? Me: “GameStop”
12.
oh no the wrong people are manipulating the stock market
13.
You guys don't know how much damage you are doing with this gamestop thing. This is Reginald Esquire Esquire The 2nd and yesterday he was worth 821 million dollars. Today he's only worth 820 million dollars. He'll only be able to buy 3 islands this year because of you.
14.
me definitely understanding the game stop/wall street discourse