Reddit is a place where people go to to discuss all kinds of things, whether it be about movies, video games, anime, business, DIY tips, and so on. It is also home to subreddits for investors who are interested in getting into the game, with users sharing tips and advice with each other.
However, it seems that a subreddit going by the name of WallStreetBets (WSB) has accomplished something rather fascinating, and that is through a series of coordinated efforts, they have managed to help drive GameStop’s share prices up by a whopping 1,700. This was done namely because the subreddit seems to target short-sellers, who for those unfamiliar, are investors who “bet” on a company’s failure.
This has resulted in the subreddit making purchases of shares of companies that your more mainstream investor might ignore or short, like GameStop, BlackBerry, AMC, and Macy’s, just to name a few. Now to be fair, there were reasons GameStop’s shares would have risen anyway as the company announced the addition of three new directors to its board in hopes of turning things around.
However, with people from the subreddit banding together and purchasing GameStop’s shares, the company’s shares have risen by a tremendous amount. A year ago, GameStop was worth $4 per share, but at this time of writing, it’s worth $200. That being said, analysts have rightfully pointed out that this is a bubble and it is unclear how long this will last, so maybe it might not be a good idea to hop on the bandwagon right now.
Filed in . Read more about Reddit. Source: edition.cnn