Amidst a pandemic, many of us have turned to our computers and gaming consoles for a sense of comfort, losing ourselves in fantasy worlds and engaging narratives. Fueled by growing technological abilities, we seldom make the trips to the brick and mortar game shops for our titles as in times past, using instead the digital marketplaces available on all the modern gaming devices.
Why, then, we ask, is GameStop’s stock skyrocketing like no one’s business?
Earlier this week, the popular subreddit r/wallstreetbets (#WSB), sporting over 4 million users, decided to turn its attention to the beloved, if not declining, game store. Approaching finance and stocks though a less than traditional approach, the subreddit had, for one reason another, decided that purchasing stock in GameStop was the right move. The web community’s influence has created quite a wave, causing the Gamestop Corp to rally +426% in the market over the last few days.
While GameStop and it’s investors seem to have experienced a revival of sorts in this strange turn of events, others have not been quite so lucky. Many hedge fund investors (#HEDGEFUNDS) who had short sold game stop (betted in ways that would benefit from the stock failing) have lost over $5 billion collectively, losing over $800 million on Tuesday alone. The chaos seems far from over, as now AMC’s stock seems to be experiencing a similar effect, the initial even sparking a wild trend in the stock market.
“How it’s going to shake out” has us all on the edge of our seats. And so, the question boils down to a single question; who’s coming out on top? With many of us having no horse in the race, the battle for billions of dollars between an informal internet community and Wall Street professionals offers a wild, entertaining kick-off for 2021.
While we don’t have all the answers but who do you think will be the real winner here, and who will get burned?
SUPER SERIOUS WARNING
- Remember to double-check your facts when you get advice off reddit
- Disclaimer: Please consult a professional before taking drastic financial action
- It helps to double check facts and terms before acting
- While time is of the essence, make sure you’re not misinterpreting any facts
- Make sure you know the difference between Stock (Inventory) and Stock (Equity)
Scholar & Storyteller
Working the front lines of Breeze as a budtender, Evan is a passionate people-person with a desire to help those around him understand what’s most important, whether it be directing customers to the right cannabis product or informing on his friends on the current trends in media scholarship. With a M.A. in communication from Oakland University, he is a life- long student, currently spending his energies educating himself in cannabis trends and developing his artistic abilities.