For some Reddit users, GameStop’s dazzling rocket flight on Wall Street is an example of the undivided efforts of the masses to resist hoarding world wealth.
The social media-driven movement caused the stocks in the U.S. video game retail chain to soar from less than $20 (approximately 1,500 rupees) a week ago to a peak of $492 (approximately 36,000 rupees) on Thursday. Costly inventory will drop.
GameStop’s stock fell about 44% at the end of the official trading day, and some of it was cashed out. But after Tesla CEO Elon Musk seemed to urge individual investors to punish hedge funds for shorting, they restarted after get off work.
A Reddit group called WallStreetBets (or “sub-reddit”) with approximately 4.7 million members has become an online gathering place that urges people to buy and hold GameStop stock and punish short sellers by raising prices.
Reddit user Responsible-Height77 told AFP on the forum: “Even through the pandemic, we continue to see that 1% of people generate trillions of dollars in income every year… But the millions of Americans who must apply for unemployment have in this way.”
“I think it is time to show that the masses have a say, our voice is very important.”
The hardships of 2020 have inspired the 21-year-old to participate in election campaigns to raise GameStop’s stock and hedge funds in the process.
The American college student said that he suffered during the pandemic and had friends who fell ill and lost their livelihoods due to COVID-19.
Are there new players in the casino?
Hedge funds have been hit hard due to market manipulation activities, and condemning the movement and its sometimes aggressive online strategy is stupid and possibly illegal.
U.S. Congressman Alexandria Ocasio-Cortez said in a widely shared tweet: “It must be admitted that seeing Wall Street people treat our economy as a casino has It has a long history, and the message board complaining about posting messages also treats the market as a casino.”
It must be admitted that it is indeed a good thing to see Wall Street people treat our economy as a casino with a long history, and they complain that posters and message boards also treat the market as a casino.
-Alexander Ocasio Cortes (@AOC) January 27, 2021
Her comments triggered controversial exchanges between controversial individuals and critics on Twitter.
“Notice how many people complain about using the rules against them?” Responded to a tweet by the educator Ken Shelton.
“This is a great example of what happens when a large group of people organize and use the system to their benefit.”
US Senator Elizabeth Warren expressed similar thoughts, saying that although wealthy investors have prospered in the stock market, it does not represent the economic reality of millions of people in the country.
The person in charge who refused to disclose his real name told AFP highly that he has been engaged in video games for much longer than he has been in the market.
WallStreetBets is full of video game culture, and the page cleverly uses the famous “Fallout Boy” characters from the blockbuster “Fallout”.
“Their motto has always been the power of gamers!” the student said. “I think we have seen ourselves as the power of the people.”
He believes that this is because people have regained power while using the basic principles of supply and demand.
“Investors need to realize that the market is not always driven by fundamentals; we are in a new era where everyone can participate in the market. If enough people want stocks, it will rise. This is the economics basis.”
WallStreetBets is an open group on Reddit, which seems to be more driven by group emotions than any leader, but the support for GameStop shares seems to go hand in hand with the millennial generation and generation of gamers.
Now, Chatter on Reddit has been encouraging companies with lower stock prices and a place in American traditional culture (such as AMC, BlackBerry and American Airlines) to carry out similar activities.
Back to earth?
The use of the DFV acronym by Reddit users is believed to have put GameStop’s stock on the launch pad at the end of 2019, thereby acquiring a US$50,000 (approximately Rs 3.65 million) stake in the company, which has become a fortune.
User DontTrustJack said in a group chat: “I see a lot of people talking about how their lives will change; this is crazy.”
“This is indeed the moment when the rich transfer funds to the rich.”
But another user suggested an exit strategy, because if they hold a large number of shares when the financial reality crisis comes, raising GameStop’s stock price may cost them.
Reddit members warned: “People with plans.” “The decline will be fast.”
Jaime Rogozinski, the founder of WallStreetBets, said he would no longer have contacts with the organization. He told AFP that he was fascinated by small investors using the power of crowds.
Rogozinski said: “They have the ability to do what Occupy Wall Street has never done before.”
“The little guy came up with another solution, and that is, if you can’t beat them, join them.”
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