Tags
Tab Item Content
Join Us!
Archives Meta
FINANCE This is how...
 
Notifications
Clear all

FINANCE This is how Wall Street thinks the Reddit-fueled GameStop trade unravels

1 Posts
1 Users
0 Likes
372 Views
josh avatar
(@zexsypmp23)
Posts: 4380
Member Registered
Topic starter
 
 POINTS
  • Shares of GameStop, the video game retailer, have climbed more than 900% since the start of the year after members of the Reddit community WallStreetBets banded together in an effort to push the stock higher.
  • At some point, the thinking goes, shares of GameStop will stop climbing, either because most of the shorts have given up and are no longer forced into buying the stock to cover losing positions or because brokers or U.S. market regulators intervene.

A demonstrator holds up a placard saying Robin Crook in front of the New York Stock Exchange, January 28, 2021.
A demonstrator holds up a placard saying Robin Crook in front of the New York Stock Exchange, January 28, 2021.
John Lamparski | SOPA Images | Sipa USA via AP Images

The war between hedge funds and retail investors over shares ofGameStophas one logical conclusion, according to executives and traders of a major Wall Street firm.

Shares of GameStop, the video game retailer, have climbed more than 900% since the start of the year after members of the Reddit communityWallStreetBetsbanded together in an effort to push the stock higher.

 

The campaign pushed a stock worth $19 at the start of the year to as high as $482.85 on Thursday. Gains by retail investors have come at theexpenseof sophisticated investors like Melvin Capital and Citron Research, which were forced to close out their short positions as the stock rose in what’s known as a short squeeze.

https://www.cnbc.com/2021/01/28/this-is-how-wall-street-thinks-the-reddit-fueled-gamestop-trade-unravels-.html

 
Posted : 30/01/2021 12:38 am