It was like a hurricane. Amateur investors, targeting stocks that the professionals had written off as dead, offered stocks in a growing number of companies. By the end of the week, GameStop was up 400 percent while AMC Entertainment was up 280 percent. At the center of it all was a battle between big and small, Wall Street versus Main Street, Robinhood Army versus hedge funds.
The drama had caught the attention of the Securities and Exchange Commission, Alexandria Ocasio-Cortez, and Ted Cruz, and elected attorneys general in Texas and New York. It was bigger than the markets.
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The Silicon Valley start-up that caused the chaos on Wall Street: Robinhood presented itself to investors as the antithesis of Wall Street. It wasn’t said that it relied solely on Wall Street either. Last week, the two realities collided.
The outsiders shake Wall Street:: They are young, they are fearless, and they force everyone to pay attention.
GameStop accounting took a long time: Over the past week, cheerful online hordes have turned the stock market upside down. This should come as no surprise.
‘Stupid Money’ is on GameStop, beating Wall Street in its own game:: GameStop stocks skyrocketed as millions of small investors, stimulated by social media, used classic Wall Street tactics to put pressure on Wall Street.
GameStop versus Wall Street
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- Stocks of GameStop, the video game retailer, have risen because amateur investors starting at Reddit have bet heavily on the company’s stock.
- The wave gained momentum when large hedge funds short-sold GameStop stock – essentially betting against the company’s success.
- Sudden demand pushed the stock price from less than $ 20 in December to nearly $ 200 on Thursday. At least on paper.
- It’s not just GameStop. Amateur investors have supported other companies that many large investors have shunned, such as AMC and BlackBerry.
- This bubble around GameStop can force large investors to raise funds to cover their losses or dump stocks in other companies.
As one Reddit user called “Roaring Kitty” and his friends upset the markets: A Massachusetts man who used Roaring Kitty on social media fueled the GameStop frenzy. His $ 53,000 investment in the company was briefly valued at $ 48 million.
Elon Musk becomes the unlikely anti-establishment hero in GameStop Saga: The billionaire has inserted himself into the confusing stock market drama and cemented his role as the ultimate insider outsider.
Everything is a joke until it is not: Reddit communities get powerful at first sight. Why do they keep surprising the world?
Legislators look at GameStop Furor and see a populist problem to be addressed: Ted Cruz. Alexandria Ocasio-Cortez. The rush of both parties to side with young traders disrupting markets reflects the widespread recognition of the impetus that drives American politics.
Trade restrictions reverse GameStop rally and anger upstarts:: Retail investors accused a trading platform of being “dishonest” and “giving in to the elite” as new restrictions on some stock deals sparked a quieter day in the markets.
Robinhood, in need of cash, is raising $ 1 billion from its investors: The free trading app popular with young investors has been burdened by the high volume of trading in stocks like GameStop.
Get Smarter: What You Need To Know
How to Stay Cool in the GameStop Market: Signs of irrational exuberance abound. Stay sober and invest long-term, says our columnist.
So you’ve just made a lot of money playing GameStop. Don’t forget taxes: Some investors may have made tens of thousands of dollars in profits. Depending on when they sell the stock, they could owe high capital gains taxes.
Behind the wild ride of the stock market: It wasn’t just GameStop. The stocks of AMC Entertainment, American Airlines, Nokia and Tootsie Roll Industries rose last week and fell briefly.
4 Things to know about GameStop Insanity: It was a strange time in the stock market when a video game retailer suddenly became the focus of attention.
How options trading could fuel a stock market bubble: An increase in individual investors is betting that stocks will rise. This craze has a growing impact on the regular stock market.