Wall Street Needs to GameStop
Magnus Ellehuus ‘22 and Will Gillette’22
GME to the moon? Hold the Line? Over the past few weeks you have probably heard these expressions quite a lot. We aren't here to explain in depth to you how this happened, but rather we’d like to dive deeper into the meaning of this Internet revolution.
The Gamestop revolution was just one of the craziest things we have seen this year, but it truly is a one-in-a-million chance. It didn't start on Wall Street, or from a millionaire’s home, but rather on a Reddit forum made up of everyday people called r/WallStreetBets. This community noticed Gamestop’s decreasing price back in late 2020 and everything finally clicked in late January of this year. Gamestop stock price skyrocketed, screwing over thousands of Wall Street shorters while reddit “stuck it to the shorts.”
Silas Witmore ‘22 at SSSAS and stock holder, said, “The people were taking the stock market into their own hands… It was exciting… the memes coming out of it were also pretty good.”
The community watching and the people taking direct action into one of the biggest events in stock market history truly shows the strong comradery that was formed on an internet forum. This shows just how much of an impact can be made from one's computer, which is especially important during the increasing Internet usage during COVID-19. However, unlike many of the selfish Wall Street employees, these everyday people weren't just focused on the money.
According to Dan Burrows at kiplinger.com, “A number of WSB traders are openly motivated by a desire to profit at the expense of "The Man": the rich hedge funds and other institutional investors on the other side of the trade. Separating hedge funds from their money – the 99% against the 1%” Buying this stock really started out as a joke, or rather a troll but happened to blow up, many never really cared about the making money aspect. These regular day traders and even the everyday man has been affected by the corruption of Wall Street whether they realize it or not. With the surge of online groups, they finally had the means to come together and fight back.
They weren't afraid to lose money, but rather really wanted their message to be heard according to Reddit user RADIO02118 who also says, “We don’t have billionaires to bail us out when we mess up our portfolio risk and a position goes against us. We can’t go on TV and make attempts to manipulate millions to take our side of the trade. If we mess up as bad as they did, we’re wiped out.” This quote perfectly embodies the large differences between these regular people and Wall Street.
Wall Street doesn't care about messing with people's money, for they have the means to not fear the consequences. However, many people do live in fear concerning their bank account, but this didn't stop them from performing an incredible act of courage and teamwork to really give Wall Street a taste of their own medicine. As we look at the GME stock today it has decreased once again. Silas Witmore states, “In hindsight I was sort of disappointed but not necessarily surprised, Wall Street always wins… all good things must come to an end.” However r/WallStreetBets continues to look for their next target and has already made some investors keep an eye out for decreasing value in companies such as AMC, Blackberry, and Macy’s. When will r/WallStreetBets hit again? Stay tuned.