Most of us don’t really understand the stock market. Many of us don’t want to.
However, an interesting turn on the stock market last week is worth taking note of.
GameStop’s stock doubled in four days and continued an upward surge, finally finishing up at 928% on Thursday, even as the store itself struggles.
A Reddit group called WallStreetBets, known for its bold trading moves, urged the buying of GameStop stock to push it higher while many professional investors were shorting the stock, or betting on it to fall.
An analysis by U.S. News said small investors came together to buy up GameStop stock to put a hurt on short sellers, hedge funds and other big financial firms. “Many talk about it in terms of evening the ledger with the financial elite, who benefited from years of gains as other people fell further behind," the report stated.
GameStop continues to struggle, as customers stay home because of the pandemic and purchase games online. Analysts expect the company to continue to lose money and the value of the stock to fall.
But the efforts of small investors weren’t in vain. They were the primary reason for GameStop’s surge, which sent the message that small-time Wall Street players are gaining power and they want to be heard.