GameStop vs. Wall Street was a wild ride with several twists and turns. It’s so wild Hollywood is turning it into a major film called “Dumb Money.” You won’t believe how crazy this real-life story is. Warning: The trailer is full of f-bombs.
GameStop shares surge again; investors lose big time
This is one of those stories you can talk about with your family and friends. A few years ago, has-been companies went viral with investors, and their stock prices went sky-high out of the blue.
Because everything is a cycle, it just happened again. After you read this, you’ll know why no one can shut up about GameStop, a company that sells video games, gaming platforms and accessories primarily from its brick-and-mortar retail stores across the country.
To the moon
This past week, GameStop stock shot up 74%, and trading had to be stopped nine different times! Movie theater chain AMC’s stock caught the wave, too. A couple of days later, the hype fizzled, and both stocks deflated — but not without leaving a big mess.
Armchair investors pushed prices up so much that short sellers betting against the companies were forced to buy back their positions, losing a billion dollars.
The man behind the mayhem? “Roaring Kitty,” the same guy who fueled the 2021 GameStop stock mania. He posted on X for the first time in nearly three years, and that sparked it all. A single meme of a cartoon man leaning forward in a chair was all it took for people to think he knew something.
Stop it right meow
To understand what’s going on now, you’ve gotta know the backstory. Investor Keith Gill, aka “Roaring Kitty,” caused chaos on Wall Street during the pandemic, but then he went dark on X in 2021.
Back then, Gill famously posted tons of videos on why investing in GameStop stock was a good idea, and it caught on like wildfire. Users on X and Reddit followed Gill’s advice, causing GameStop’s shares to rise in value by 2,000% in less than one month.
This drove up the stock prices for some other failing companies, too, including BlackBerry, Bed Bath & Beyond, and, yep, AMC. But we all know what goes up must come down — and boy, did they.
Trading apps like Robinhood put a pause on buying and selling of GameStop stock. Prices crashed and burned, and tons of people ended up with stock worth way less than what they paid.
You gotta be kitten me
GameStop phenomenon: How Reddit rocked Wall Street
Let’s rewind to 2020. Keith Gill, a 33-year-old investing enthusiast, was frequenting a Reddit forum dedicated to investing. During one discussion, someone said that GameStop’s stock, priced at $5 per share, was a great bargain.
Reddit mob gave Wall Street a run for its money
What’s going on with GameStop? Why are hedge fund managers sweating bullets? It all comes down to Reddit, the self-proclaimed “front page of the internet.” Here’s the full story.
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😸 You’re kitten me: Shares in GameStop are surging. Before you jump on the bandwagon, “short sellers” (those betting against the retailer) are facing over $1 billion in losses after the stock roughly tripled this month. What happened? “Roaring Kitty,” the man behind the 2021 GameStop mania, just posted on X for the first time in nearly three years.
$750M in stock will be available when Reddit IPOs
Shares will be priced at $31 to $34, and get this: The 75,000 most loyal posters and moderators will get first dibs. Let’s see if we have another GameStop situation or if Redditors will buy the stock for keeps.
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