GameStop to The Moon

GameStop+to+The+Moon

Connor Parker, Staff Writer

Reddit is a social media website that is for different communities to come together and talk and post
about different topics. One specific Reddit community got very popular recently. R/wallstreetbets is a
Reddit community that centers around the stock market. Recently they decided as a community to start
investing in certain stocks which they would call “meme stocks” Gamestop was one of these meme
stocks.

Professional investors in Wall Street make money betting on stocks falling by shorting them. Shorting
socks is when they buy a stock then sell it then if the price goes to where they expected it to the can buy it
back there and earn money from the difference. Gamestop has recently been one of the most shorted
stocks. As a way to get back at these people who short stocks the people at r/wallstreetbets came together
to purchase stocks in Gamestop to shoot the price “to the moon.” This caused the people who shorted
these stocks to have to spend more money to buy them back which became a loss for them.

Robinhood is a stock trading and investing app and it was the platform that many people used to purchase
this Gamestop stock. So many people had started investing in Gamestop on Robinhood they ended up
restricting people from investing in certain stocks Gamestop being one of them. This led to multiple class
action lawsuits being filed against Robin hood. According to CNN Business the lawsuit states,
“Robinhood’s actions were done purposefully and knowingly to manipulate the market for the benefit of people
and financial institutions who were not Robinhood’s customers.” Tho even with this restriction Gamestop’s price
soared over 1000% at its highest.

This meme stock shows how much the internet and social media has on the world. A falling stock with
just a couple people talking about it soared and caused quite a few of the rich in Wall Street to lose
money. The Gamestop price still today is much higher than it was before people started this. This also
shows how difficult it can be understand and predict what happens in the stock market. R/wallstreetbets
currently has 9,000,000 people in its community and are still investing in different companies doing the
same thing.

This could lead to a brand new way the stock market works where meme stock can take over and thats
where people would buy from. Especially when we have the richest man in the world, Elon Musk, who is
encouraging people to engage in this. We could be seeing investing in stocks change right in front of our
eyes.