novy internetovy humor na reditu
Amateur online traders fueled by discussions on Reddit sent shares of a struggling video game retailer flying Wednesday, a moment that is underscoring the divorce between the skyrocketing values of companies and the pain in the real economy.
GameStop, a video game retailer struggling to keep up with direct downloads even before the coronavirus pandemic, saw its share price jump to $347 per share on Wednesday. Overall, its share price has risen more than 1,800 percent in January.
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Some users, primarily DeepFuckingValue and delaneydi, had started arguing as early as September 2019 that the retail chain’s stock was being undervalued by the market. They also identified that several hedge funds had been betting against it using a tactic called short selling, which is effectively a bet that a stock’s price will fall.
The proposed strategy picked up significant steam in the last year, especially with DeepFuckingValue sharing updates as his initial $53,000 investment in GameStop ballooned. The Redditors have bought massive numbers of the stock and are holding onto it, forcing the hedge funds that had shorted the stock into something called a short squeeze.
A short squeeze is a tactic used by investors to force short sellers of a certain stock into a cycle of deep losses by driving the price of that stock higher. As more investors buy the shorted stock for higher prices during the squeeze, short sellers are also forced to buy shares to fulfill contracts, which puts more upward pressure on the share price.
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https://thehill.com/policy/finance/536212-reddit-traders-cause-wall-street-havoc-by-buying-gamestop atp
nebo primo na reditu (/r/wallstreetbets)