GameStop Stocks: The Truth

Justin Ramsey

GameStop stocks The Truth

In the last couple of weeks, GameStop and Robinhood were all over social media. The surge in their stock prices and then the fall back down had many people talking. 

Stock trading is buying a percentage of a company in exchange for some of the company’s profit in a way you are an owner of that based on the number of shares you buy. 

GameStop stock surging up is a very rare thing happening in such a short amount of time going from around $20 to the high 300’s in a matter of 2 weeks which is fast for stocks of similar kinds. 

It didn’t maintain its high value as it was brought back down to market price, but the short time when its stocks were surging it changed the trading game for millions of people. 

The reason all of this happened is that a large group of Redditors in the wallstreetbets joined together buying a load of GameStop stocks forcing the share price to rapidly rise. This is unusual because GameStop is still struggling to stay open but its stock doubled big brands like Apple in a matter of weeks. Wall Street investors who bet that GameStop stock would fall lost millions of dollars. 

DSCN1753“DSCN1753” by Perpetualtourist2000 is licensed under CC BY-NC-SA 2.0

Since the big surge in GameStop, Robinhood restricted other traders from buying GameStop, but Robinhood didn’t just block GameStop it blocked other companies too like AMC, Blackberry, and much more. Anything associated with the Reddit trend got restricted from Robinhood.  

Since Robinhood stopped supporting these companies, millions of traders are ready to stop using Robinhood. 34 civil complaints were issued against Robinhood. 

With all of this in mind could a bunch of people from a social media platform really change the stock of a billion-dollar company to rival that of a trillion-dollar company. According to Vice President of the Stocks club, Max Goldstein, he said 

“ Yes we saw that with the effect Wall Street bets from Reddit had on stocks that were being shorted like GameStop and AMC”.

 The stock market is sensitive and it can be set upside down when thousands of people decide to revive a dying company. Currently, GameStop stock is lowered to the high 40’s. It is amazing how fast something can crash and burn.