Reddit users substantially raise price of GameStop stock
Jan. 28, 2021
What is going on on wall street, and what is up with GameStops stocks. Reddit users raised the price of certain company stocks. When Wall Street bet against GameStop, AMC, and more, online investors on Reddit coordinated sending their stock through the roof. We talked with Jay Spector of Barton Spector Wealth Strategies on the topic.
Social media users have driven the stock price of certain companies. Spector said they are trying to cause harm to institutional and hedge fund investors. It is a large number of small traders teaming up against big institutions. They used the chat rooms on social media sites, including Reddit, to drive up different companies’ share prices. Spector said the average investor can cause people to lose a lot of money. We talk about when it may be crossing the line to fraud. GameStop and AMC are both struggling companies that have been targeted in the stock market. We talk about if this is the start of a trend and how it compares to the “.com bubble” from about 20 years ago. Spector said that he is not sure where it will go from here, and it is “anybody’s guess.” (Go to this url for more details)