Call it luck. Call it perseverance through a pandemic. Call it whatever you want, but this is crazy.
In case you missed the last week of stories related to the stock market, you have a lot to catch up on. Reddit users have placed their bets against the “all-knowing” Wall Street veterans and appear to be making a huge impact. The way it played out started with a Reddit post that was broadcast to more than 2M users. The goal was simple: Drive stock price to save the beloved GameStop and AMC Franchises from tanking. Let me tell you, goal achieved!
The challenge that we are seeing here is that the way this occurred was unconventional according to seasoned investors. No one knew that looking at the year over year valuation of these very well established companies would lead to such high growth potential. With both companies expecting to post their 2020 annual revenues soon, and both expecting to show losses, Millenials and GenZer’s did what they do best – took to the internet- to save a legacy brand.
This move caused an uproar, a kind of David and Goliath story if you will, in trading between the “Averages joes” and the “Wall Street Pros” that prove there was something left for these companies. While many speculate movie theaters closing, and video game stories falling to the way side, the impact a simple Reddit forum that took on Wall Street had changed everything.
It went so far as to have common stock trading platforms Robinhood and TD AmeriTrade restrict trading to look into what caused such a massive uptick. With stock prices for GameStop and AMC both falling short of $20, these moves tell that story of what is possible when a group of daily stock traders take on the beast.
For the original story, visit: https://www.cnn.com/2021/01/27/investing/gamestop-reddit-stock/index.html
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