The past week has been a wild ride in the stock market, with WallStreetBets retail investors at war with Hedge funds, picking 2 key fronts for an attack: GameStop and AMC. With the weekend passing over as well as nearly half of the week, it appears as though the smoke is clearing, and the stocks are falling back down closer to their usual levels.
A key driver of this force being Robinhood and other brokers’ restrictions on trading these specific companies, something millions have people have called out as corruption. Despite this Robinhood CEO Vlad Tenev announced and denied any “conspiracy theory” saying the buying limits were made by a market maker or hedge fund. Whether or not he’s telling the truth, well the app store ratings don’t lie.
GameStop shares closed 60% lower on Tuesday to end the day at $90 a share. These losses were a continuation of the 30% loss from last Monday. Despite this decline, many Wall Street Betters are far from giving up and will continue to hold their positions, to express this message with confidence a popular lingo being used is “diamond hands” – since diamonds are the strongest material in the world and will not break under pressure. But after squeezing some Hedge funds hard and creating a literal revolution, WallStreetBets changed the definition of what a retail investor can do and their power in the financial world.
I am not a financial advisor and my comments should never be taken as financial advice. Investments come with risk, so always do your research and analysis beforehand.