And it remains difficult to predict what is in store for the future. The State of the Stock Market The stock market’s decline this year has been painful. While this speculative frenzy played out on the market’s sidelines, the S&P 500 fell more than 2.5 percent on Wednesday, its worst day since late October, as the Federal Reserve gave a glum assessment of the economy and before a number of big tech companies announced their earnings. Some analysts say the intense activity could eventually prompt a wider sell-off in the market by forcing hedge funds on the losing side of these trades to sell parts of their portfolios to raise cash to cover their losses. “By buying GameStop, it’s kind of like beating them at their own game.” “It’s a good opportunity to make money and stick it to the hedge funds,” he said. And speculation is growing that other investors are seeing fresh opportunities to push the stock even higher.īen Patte, 16, a high school student in Wisconsin who said he made $750 off GameStop stock, said the campaign felt like vindication for himself and fellow young traders. This week, Tesla’s chief executive, Elon Musk, fueled the trading by posting about the Reddit page on Twitter. The tribal framing online, as a kind of team sport pitting plucky upstarts against well-heeled Wall Streeters, has been especially helpful in motivating more investors to participate. Between Tuesday and Wednesday, the market value rose over $10 billion. Its shares have risen over 1,700 percent since December. That caused GameStop’s market value to increase to over $24 billion from $2 billion in a matter of days.
#WAR OF BEACH REDDIT PROFESSIONAL#
While the hedge funds and other professional money managers had been shorting GameStop’s shares, betting that its stock was doomed to further decline, the retail investors - online traders, mom-and-pop investors, small brokers and others - have been pushing the other way, buying shares and stock options. But the trade that captures the David-versus-Goliath nature of the moment involves GameStop, the troubled video game retailer that was once a fixture in suburban malls.
#WAR OF BEACH REDDIT MOVIE#
Stock in AMC, the movie theater chain, has surged nearly 840 percent. BlackBerry’s shares are up nearly 280 percent this year. Some of the names are from an earlier business era. Propelled by a mix of greed and boredom, gleefully determined to teach Wall Street a lesson, and turbocharged by an endless flow of get-rich-quick hype and ideas delivered via social media, these investors have piled into trades around several companies, pushing their stock prices to stratospheric levels. They are among the millions of amateur traders collectively taking on some of Wall Street’s most sophisticated investors - and, for the moment at least, winning. A high school student in the Milwaukee suburbs. An evangelical pastor and his wife in Huntington Beach, Calif. A real estate salesman in Valparaiso, Ind.
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