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It was like a hurricane. Amateur investors, targeting stocks like GameStop that the pros had written off as dead, bid up shares in a growing number of companies. It was a battle of big versus small, Wall Street versus Main Street, the Robinhood army versus the hedge funds.
The drama had caught the attention of the Securities and Exchange Commission, Alexandria Ocasio-Cortez and Ted Cruz and elected attorneys general in Texas and New York. It was bigger than the markets.
Catch up with our coverage here:
What Is GameStop, the Company, Really Worth? Does It Matter? The frenzy for the troubled retailer’s stock has been a headscratcher for the analysts who try to determine a company’s value.
Robinhood, Under the Gun, Raises $2.4 Billion: The high volume of trading by its customers, many of them egged on by social media, has put a strain on the company’s balance sheet.
Silver Rises With Hype It’s the Next GameStop, but a Backlash Mutes Gains: The precious metal jumped 11.5 percent to its highest level in eight years, then gave up some of its gains as some online investors smelled a trap.
Gensler Faces Big Challenge in Tackling GameStop’s Wild Ride: There is broad agreement that the capital markets have been distorted but less consensus on what, if anything, the S.E.C. should do about it.
GameStop vs. Wall Street
Let Us Help You Understand
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- Shares in GameStop, the video game retailer, have soared because amateur investors, starting on Reddit, have bet heavily on shares of the company.
- The wave gained momentum in response to large hedge funds short selling GameStop stock — basically they were betting against the company’s success.
- The sudden demand has driven up the share price from less than $20 in December to around $300 on Monday. On paper, anyway.
- It’s not just GameStop. Amateur investors have backed other companies that many big investors had shunned, such as AMC and BlackBerry.
- This bubble around GameStop forced big investors to raise money to cover their losses, or dump shares of other companies.
The Silicon Valley Start-Up That Caused Wall Street Chaos: Robinhood pitched itself to investors as the antithesis of Wall Street. It didn’t say that it also entirely relies on Wall Street. This past week, the two realities collided.
The Misfits Shaking Wall Street: They are young, they are fearless and they are forcing everyone to pay attention.
The GameStop Reckoning Was a Long Time Coming: Gleeful online hordes turned the stock market upside down. This shouldn’t come as a surprise.
‘Dumb Money’ Is on GameStop, and It’s Beating Wall Street at Its Own Game: GameStop shares have soared as millions of small investors, egged on by social media, employed a classic Wall Street tactic to put the squeeze — on Wall Street.
How a Reddit User Called ‘Roaring Kitty’ and His Friends Roiled the Markets: A Massachusetts man who goes by “Roaring Kitty” on social media helped fuel the frenzy around GameStop. His $53,000 investment in the company briefly reached $48 million in value.
Elon Musk Becomes Unlikely Anti-Establishment Hero in GameStop Saga: The billionaire has inserted himself into the confounding stock market drama and solidified his role as the ultimate insider outsider.
Everything’s a Joke, Until It’s Not: Reddit communities grow powerful in plain sight. Why do they keep taking the world by surprise?
Lawmakers Look at GameStop Furor and See a Populist Issue to Seize: Ted Cruz. Alexandria Ocasio-Cortez. The rush by both parties to side with young traders disrupting the markets reflects the broad recognition of the impulses driving American politics.
Trading Curbs Reverse GameStop Rally, Angering Upstart Traders: Small investors accused one trading platform of being “dishonest” and “pandering to the elite” as new restrictions on some stock trades spurred a calmer day in the markets.
Robinhood, in Need of Cash, Raises $1 Billion From Its Investors: The no-fee trading app, which is popular with young investors, has been strained by the high volume of trading in stocks like GameStop.
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