Company stunned by soaring shares

A tiny mining company in Western Australia saw its shares soar more than 50% on Thursday — leaving directors “stunned”. The unexpected movement occurred because the ASX code of GME Resources matches that of GameStop, which is having a wild week. The US video-game seller saw stock rise by more than 1,700% thanks to the support of millions of mum-and-dad traders in the Reddit forum WallStreetBets — until the group was briefly shut to new members, causing shares to slump as much as 25%. This week's showdown between short sellers and the Reddit crowd showcases the rising power of individual investors, who historically haven't influenced stock prices on their own. Source: https://lnkd.in/d99mUwW

Is 2021 the year of the 'meme stock' market? What even is a meme stock? James Surowiecki breaks down how an army of retail investors and Redditors—fueled by the pandemic, stimulus checks, boredom, and a healthy dose of YOLO—are responsible for GameStop's astronomical stock rally. Other beaten-down firms including AMC Theatres, Nokia, BlackBerry, Tootsie Roll Industries (yes, the chewy chocolate) are being hyped by r/WallStreetBet traders. "The Redditors don’t love these companies because they think their future prospects are genuinely great," Surowiecki writes. "Instead, what meme stocks all have in common is that they start off with a cheap stock price and a relatively low market cap, and they’re heavily shorted, meaning that hedge-fund managers are betting that these stocks are going to fall." Learn more what the new dynamic between Redditors and Wall Street reveals about the stock market in 2021. #stocks #stocktrading #retail #investing #reddit #wallstreetbets #memestocks https://lnkd.in/gBEheE5

The sheer volume of GameStop shares being traded is pretty staggering, Mark DeCambre writes in this MarketWatch story. Deutsche Bank’s strategist Jim Reid said that more GameStop shares traded by value yesterday than either Tesla Inc. or Apple, a pair of companies that dwarf GameStop by market value. Tesla is a roughly $840 billion company while Apple is a $2.4 trillion behemoth. Still, that didn’t stop some 178,588,000 million GameStop shares changing hands, while comparatively, 98 million shares of Apple changed hands and 23 million shares of Tesla traded, according to Dow Jones Market Data. https://lnkd.in/dFfW2HR #GameStop #stockmarketnews #tradingnews #finance

What is happening to $GME is the epitome of technological disruption. The world is changing and for the positive: decentralization of knowledge, finances, and resources -- fueled by fast-growing online communities (Reddit, substack, Patreon, clubhouse, etc). Wallstreet has had its way for years pushing retail investors around, but $GME is showing it in the best way possible that the playing field is being leveled. Regardless of who wins this battle, I think the coming years will be marked by this trend: decentralization, which should be positive for everyone - since it's no longer about who has the most resources, but rather who has the best ideas.

Its silly season already in the markets and for once its nothing to do with cryptocurrency. Market watches were stunned to see a parabolic rise in the stock price of Game Stop and Black Berry. Largely driven by hype but also by the combined efforts of a reddit sub to push the prices as high as possible and cause a short squeeze. We are now at the point where some investment communities are so large in numbers they have enough weight to throw around the markets and compete with traditional finance. And when it comes to fundamentals, gamestop (a brick and mortar computer game business) and black berry (a name I haven't heard since I swapped by black berry for an iphone) don't seem like immediate picks for stock of the year. Remember, the rise of downloadable games (especially for PC) has largely pushed the industry of video game shops out of the door. There is a crypto angle here. Officials are once again considering a possible bitcoin exchange traded fund (ETF). Previous rejections focused on the volatility and manipulation of the bitcoin price. When those issues are just as present in the legacy markets, then it becomes more difficult to trade bitcoin as a special case. #stockmarket #financialmarkets #cryptocurrency #blockchain