Reddit Traders #WallStreetBets made millions as Wall Street lost billions
A meteoric rise in the share price of GameStop has trained the eyes of stock market watchers on a fast-growing Reddit discussion board called Wallstreetbets, where it appears that 20-somethings armed with, MooMoo and TradeStation are targeting stocks to soar and hedge funds for takedowns.
The drama has sent GameStop shares up nearly 2,000% in the past month. On Wednesday, the stock price of the troubled retailer of video games soared yet again, this time up more than $200, to surpass $350 a share.
While GameStop shares have been a favorite of Wallstreetbets members, the money-losing company has been closing stores and been a target of hedge funds and so-called short-sellers who wager that the shares of particular companies will fall.
Wallstreetbets posters have fought back by vowing never to sell, egging each other on to buy more shares and attacking critics of their favorite stock. Andrew Left, a noted short-seller who had predicted GameStop’s demise, last week stopped commenting on the company,.
Now, Wallstreetbets members appear to be widening their aim to focus on other companies that, much like GameStop, the rest of Wall Street has left for dead. Shares of former phone maker Blackberry, LaCroix seltzer owner National Beverage and troubled movie chain AMC have also soared after mentions on the Reddit board.
At a time when viral online movements are having a growing influence on real-world events, including the deadly storming of the, some are describing the Wallstreetbets saga as the stock market’s conspiracy-peddling equivalent. Wallstreetbets is Occupy Wall Street meets QAnon, goes the thinking. Its posters talk about taking revenge on the hedge funds they insist have secretly controlled Wall Street and hail their recent triumphs as a win for the 99%.
“Hedge fund managers live in the past, and continue to look down upon the retail investors,” wrote one Wallstreetbets commenter on Wednesday. “This is the world they want to live in. This was the past.”