This may come as a massive surprise, but the reddit community has proven that a bunch of amateur traders can outsmart a handful of stock experts. It started back in 2019 when Reddit users DeepF!@#ingValue and delaneydi defended their case about GameStop's stock value.
Fast forward to this month and you'll be shocked to witness GameStop's share price increase by a 1,800%. As of now the share price is at $347.00.
Given the massive increase, hedge funds like Melvin Capital were forced to closed their GameStop markets in order to diminish their losses. Even WallStreet decided to halt the trading for GameStop.
GameStop isn't the only company experiencing a surprising surge as both Blackberry and AMC have also ascended in terms of stock price.
What's common about GameStop, Blackberry, and AMC is that these companies are currently in a state of crisis. GameStop has struggled to deal with online video game retailing, Blackberry hasn't adapted to the smart phone era, and AMC's operations are currently slowed by the pandemic.
Yet amid the bleak future of these companies, their stock prices are currently soaring. There's something shady about this. Some legal experts are saying that GameStop's increased value is market manipulation.
As of now the US government is monitoring the situation. Some would argue that this is a victory for the online community yet there are those who remain skeptical about it.
Could this be another ponzi scheme in the making? Or is this a new revolutionary method in stock market trading? Will this have long term negative benefits to the point where the entire economy could be affected? We'll have to wait and see.
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