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How Reddit managed to increase Gamestop's value


FollowOliver Dunnefor regular updates​ on the technology investment market.

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How did a group of people on Reddit, Inc.manage to increase GameStop's value by $8.8bn in one week & severely impact the fortunes hedge funds in the process❔

/WallStreetBets (“The Wild West of investing advice”) is a subreddit – an online community hosted on Reddit – of casual traders who play the markets and treat each investment like a spin at the roulette wheel than a long-term strategy to build wealth.

Followers of r/WallStreetBets have had their eye on Gamestop for a couple years now.
The arrival of investor Ryan Cohen, a reputable investor typically known for making safe bets, on the board of Gamestop, inspired confidence in the stock.

When it became apparent that the company was heavily shorted a band of subscribers realised that if they worked together they could make money from the short sellers.
They did this by orchestrating a short squeeze against short sellers.

Andrew Left of Citron Research ridiculed WallStreetBets users for investing in the “failing mall-based trader”.

In April following the announcement of mass closures shares in Gamestop could be purchased for just $3.25.

At close on January 26 shares cost $148.

The value of the business has soared to $10 billion, up from $1.2 billion in 2020.

#gamestopReddit, Inc.#shorts#stockmarketanalysisNYSE