Gamestop stock: people vs hedge fund managers – Reddit revolution & future?

GameStop and other stocks targeted by Reddit users crash! Really? This is the 2021 story. “Small speculators conspire on forums to buy stocks – bringing even professionals to their knees. Enormous price jumps are the result. That’s what’s currently happening with the stock of video game retailer Gamestop.” – DW reports.

Hedge funds in their sights: GameStop & Co.

Game Stop has been a real mystery to me the last few days. Michael Knowles just solved the mystery for me. What a story!

Future Crowd Corrective?

Briefly narrated: Tens of thousands, hundreds of thousands of private investors conspire on a Reddit forum to make coordinated purchases of specific stocks. Old stocks like Blackberry, Nokia, and GameStop. They want the price of the stocks to go up so hedge funds that bet on falling prices can’t sell. The more expensive the securities get, the less profitable it becomes for the hedge funds – David against Goliath.

Hedge funds are the means of the super-rich. They earn by betting on falling prices. A game that wealthy people use to increase their wealth, through the expertise of financial managers. So the game is this: A few wealthy people, against mostly solid companies and thousands of employees. What if one or two million people could network to disrupt the concept?

You can – viva la Internet

All from a Reddit forum.

GameStop stock explained: Reddit vs. hedge funds

Since the function of hedge funds in combination with new crowd-sourced strategies would require a lot of text, here is one of the best and simplest explanations I could find for you on Youtube:

Revenge for short selling

DW – Hedge Fund Manager Explains GameStop

How small investors are turning the stock market upside down.

Let Them Eat Tendies – Michael Knowles

CNN – The cast of characters

Report from CNN: The cast of characters

“Who is the monster and who is the hero in this case depends entirely on your perspective.
On the one hand, you have a group of mostly young day traders coordinating on Reddit to drive up the stock price of struggling companies, including GameStop (GME), but also BlackBerry (BB), Macy’s (M) and AMC (AMC). At least one Reddit user posted that he used his GameStop profits to pay off thousands of dollars in student loans.

On the other hand, there are hedge funds and short sellers – those who bet that a company’s stock will crash. These are Wall Street’s elite, the kind of investors millions rely on to make smart decisions that grow their portfolios. But they are loathed by many Millennials and Gen Zers because they created a house-of-cards financial system that led to the 2008 crisis.

We may now be at the peak of this movie, with GameStop up more than 1,700% since the beginning of January.”