I know this is a little late, but my original idea for writing a blog about NFT (Non-Refundable Tokens) was stolen from me by my very talented co-worker Josh, so you guys get Gamestop instead.
Let me start by saying I have never bought, traded, or invested in a stock. I think everyone has a get-rich-quick-itch that we all scratch in different ways. Some of us buy lottery tickets, others invest in the stock market. I personally love sports betting, but that’s a blog for a different day. We’re talking Gamestop.
The reason this story interested me is the David vs Goliath narrative. The amateur investors being David and the wall street Millionaires being Goliath. Now like I said earlier, this is all coming from someone who knows nothing about the stock market.
Gamestop holds a special place in my heart. I have memories of being 13 years old and riding my bike to Gamestop to trade in games I had bought last month for $120 only to net a return of $14.76 that I would put towards the new Madden game.
So let’s dive in. At the start of the pandemic, brick and mortar retail stores were struggling since people were unable to leave their homes to go shopping. It doesn’t take a genius to realize this means Gamestop was in trouble. Hedge funders took notice and bet that Gametop was on its last leg and ultimately doomed.
This is called a ‘short sell.’ It is completely legal.
Enter the Reddit thread called Wallstreet Bets. This group of small-time investors banned together to make history. Through apps like Robinhood, these amateur investors began pouring money into Gamestop stocks.
Stock prices sky-rocketed.
In less than a week, the price went from around $30 per share to more than $340 per share. This turned a few risk-taking Redditers into overnight Millionaires. To the victor goes the spoils. Now let’s talk about the losers. You can guess that the Big Hedge fund investors were not happy about losing BILLIONS. Is it wrong that hearing that gives me a warm and fuzzy feeling?
I wish this post could stop here and for once the little guy wins and goes home rich, but this isn’t Hollywood. It’s Wallstreet.
After reading a few recent articles I discovered that Robinhood and other financial services companies restricted people from buying those skyrocketing retail stocks, only allowing them to sell. In recent weeks, Gamestop stock prices have plummeted back to earth, leaving many small-time investors to think about what could have been.
There are those who got out early and pocket a large amount of cash, but most of the people who jumped on the bandwagon late are taking losses.
If I learned anything from this it is to chase your dreams AND always stick it to the man.
I’m Tommy and that’s my take.