At the time of this writing, it’s been about 3 weeks since WallStreetBets and other investors took Gamestop’s stock to the moon. This David vs. Goliath situation has been incredibly interesting to me and a lot has happened since it started that I wanted to take the time and do a follow-up piece.
I found the answers to my questions and I want to share my findings with you.
Party’s Over
After the WallStreetBets blew up Gamestock’s stock 1,500%, it looks like the bubble popped as the stock now sits at $50 per share down from the $347 per share at its height. Brokerages like Robinhood, who previously restricted trading Gamestop’s stock (GME: -16.15%), are now allowing investors to buy and sell Gamestock’s stocks and options again.
It looks like from here on out Gamestop’s stock will more accurately reflect the company’s value instead of a bunch of goofballs inflating its worth trying to damage hedge funds.
Still Standing
Despite their best efforts, WallStreetBets and other retail investors were unable to take down Melvin Capital or any of the other hedge funds that were short-selling GameStop. But that doesn’t mean the hedge funds are out of the woods yet as the House Financial Services Committee, led by California Representative Maxine Waters, will hold a hearing to examine the practice of “short-selling” and other controversial stock market practices.
Rep. Maxine Waters wants Redditor Keith Gill behind GameStop frenzy to testify at hearing https://t.co/lBSPt7Yrtw pic.twitter.com/VIXe86rDn6
— New York Post (@nypost) February 4, 2021
Representative Waters released a statement on the House Financial Service Committee website, which you can read here, that says what her intentions will be:
“We must deal with the hedge funds whose unethical conduct directly led to the recent market volatility… and how [the market] has been manipulated by hedge funds… to benefit themselves while others pay the price.”
Tendies in Valhalla
As for WallStreetBets, they’re still holding strong to GameStop stock and seeking other stocks to get rich quick with. User jcal1290 shared his marijuana stocks growing rapidly in value and could potentially make him a millionaire this year.
Other users talk about their shortcoming as with one user who admits that he got “caught up in the hype and bought 83 shares at an average of 180” and that he won’t let them go now.
Future Crazes?
Dr. Tom Arnold, a Finance professor at the University of Richmond, said he believes this GameStop fad started something big among retail investors. He says, “It’s GameStop right now, but it wouldn’t surprise me if six months from now it’s a different stock.” But I have to wonder would that even be possible moving forward?
Everyone on Capitol Hill and Wall Street is aware of what happened and something like this probably won’t happen again. At least not for a while. Even WallStreetBets have started to move on and focus on other insane and risky investment moves.
HBO has announced a movie on the GameStop stock market saga https://t.co/6WWJDX1NcT pic.twitter.com/PbkeAKKVGj
— Nibel (@Nibellion) February 5, 2021
This will be the last piece I do on the GameStop story unless something insane happens. After this, I’ll be focusing on stuff like Representative Waters’ hearing and law changes, if any.
So, what do you all think of this situation? What will happen to GameStop? What will the 8.8 million degenerates on WallStreetBets (as they call themselves) do?
I’d love to hear your thoughts on the situation.
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