Twitter has changed the worlds of news and politics. Reddit users are betting they can take GameStop shares "to the moon."īut for some on Wall Street, it's the latest sign of how social media can upend everyday life. For some, it's been fun to watch those investors get taken to the cleaners by a bunch of people posting rocket emojis, saying GameStop shares will go " to the moon." This may seem like an oddball story about Wall Street investors being overrun by excited social media users. "We're seeing a phenomenon that I have never seen," Jim Cramer, a Wall Street commentator on CNBC and a former hedge fund manager, said during a segment as shares were first beginning to swing. Read more: GameStop's stock spike fueled by slang from Reddit's r/WallStreetBets community. Robinhood, for its part, said last week that market rules effectively forced it to put those restrictions in place. Now it's being accused of outright market manipulation, including through at least one class action lawsuit filed already. People had been raising concerns about Robinhood for a while, saying it "gamified" stock trading to a potentially dangerous degree. The popular stock trading app Robinhood drew particular attention for what appeared to be the among the most restrictive new rules. Meanwhile, stock market trading apps appeared to either stop or impose restrictions on GameStop share purchasing for at least part of the day. Then, in after-hours trading, it rose back up to $311.99. The next day saw even more dramatic moves, with the stock jumping up to $492.02 before dropping nearly 60% to close at $197.44. And then in after-hours trading, it dropped by more than 37%, only to rise again. 27, the stock was $347.51 per share, up from from historic lows of around $3.30 per share in the summer of 2019. Even Elon Musk tweeted about it, pointing his 43 million followers to a link of the Reddit community investing in GameStop, called r/WallStreetBets.īy the close of regular trading on Wednesday, Jan. Over the past couple weeks, the financial world watched in shock as GameStop stock (or "stonk" as the reddit community calls it) rose to unthinkable levels. This dynamic's led Wall Street investors who bet against the company's future to lose billions of dollars, and the excitement is driving the hype even further. But its stock has shot up as much as 1,800% - that's not a typo - since the beginning of the year. It's still a struggling retailer facing an uncertain future against the rising tide of online shopping.
GameStop itself hasn't fundamentally changed in the past month. Last week, on Thursday alone, GameStop's stock hit all-time highs of $492.02 per share, only to drop by more than half a minute later. Jaime Rogozinski, the apparent founder of the Reddit community at the heart of all this, told The Wall Street Journal it's like "a train wreck happening in real time." Keith Gill, the trader in the Reddit community who helped kick off the battle, told the paper he "didn't expect this." 1, by more than 30%, many Reddit users say they're buying more GameStop stock, convinced it'll rocket even higher. That led the stock to rocket up, and then swing wildly.Īnd though the share price dipped on Monday, Feb. Wall Street had bet heavily that the company would fail, but as the price kept going up, investors were forced to reset their wagers. GameStop's shares rocketed higher than ever expected in the past couple weeks, and all because activity among social media investors began pushing it up.
Now some of those gamers are rich after buying GameStock's stock and encouraging their friends on Reddit to buy it too. Many of today's adults spent their youths in GameStop stores. GameStop shares are on an epic roller coaster that pushed them to the stratosphere.
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