“What we’re seeing is an influx of speculative retail traders who don’t have any philosophy about valuation.” He quotes a phrase from Bloomberg’s Tracy Alloway: “Flows before pros.” The market will be driven by a flow of capital rather than fundamentals-not a novel quandary considering 1999’s dotcom bubble. “The traditional Wall Street view is that markets are driven by some tie to fundamental value,” said Hoffstein.
Tensions between retail investors like WallStreetBets and a traditional short seller like Citron Research have threatened to boil over for some time, in part because of a core philosophical difference. Twitter told WIRED it locked his account as a precaution. Left did not respond to WIRED’s request for comment. WIRED has not confirmed whether doxing happened or if it was through WallStreetBets channels.
WallStreetBets moderator Bawse1 says that he doesn’t know if those things happened, “and if they did, it’s not something we condone or promoted.” At least two posts on the subreddit refer to an alleged doxing. To remedy the situation, GameStop announced it would pivot to a social-hub model, like a modern LAN cafe. GameStop laid off dozens of regional managers in mid-2019 after a precipitous, years-long decline in its stock price. Its thousands of store locations couldn’t compete with the digital marketplaces offered by the game consoles and PC titans Steam and Epic Games. But GameStop was in dire straits even before the pandemic struck. Few gamers would rather hit the mall than Amazon’s significantly safer Buy Now button. Like other physical retailers, GameStop’s business has suffered in the past year.
While this isn’t the first time WallStreetBets has contributed to a surprising market shake-up, GameStop’s unlikely trip to the moon is unique in both its velocity and the allegations of harassment and hacking that accompanied it. Today, a war over the value of video game retailer GameStop’s stock has caused what market guru Jim Cramer called “the squeeze of a lifetime.” Howling with glee along the way, traders on the chaotic and obscene subreddit WallStreetBets helped push GameStop’s stock price up from $20 on January 11 to $73 after traditional analysts deemed the stock a clunker.
0 kommentar(er)
