Meme Stocks: Desk Diary – January 28, 2021

  • Opinion

Man, this week had its highs and lows.

Just yesterday, I was reeling away from the stress of handling simultaneous online events. Today, I was relieved of that stress and got myself back into shape.

Also today, I learned of the term “meme stocks.” This, after investors at r/WallStreetBets (with its official Twitter Handle @wsbmod) rallied GameSpot’s stock and keeps holding it until now as we speak.

The stock has blown up so much that I’ve been informed of controls in pushing for the said stock. Call it anything you want, but I understood that this is a story of the people – individuals, more so gamers (I’m confident I got this one right) – are fighting the establishment.

From what I know, GameStop is predicted to file for bankruptcy.

This is a lesson for all of us. Never underestimate the market. Never underestimate retail investors with a rallying cry. Never underestimate the power of individuals banding together. Hedge fund Melvin Capital has bet against GameStop only to take huge losses because Reddit likes the stock so much.

As I continue to tread along the subreddit, I see some stories of people who was left penniless because of the establishment playing things all along and putting them to an unfair advantage. While I cannot at best measure myself to their state way back then, I understood that the times are hard. We’ve been through the 1997 Asian Financial Crisis and the 2007-2009 Great Recession. It’s not good at all.

While I don’t have the necessary proof why people with money are coming out and backing up a stock as a way to break Wall Street hedge funds a leg or two. Aside from GameStop, other stocks in the same situation as theirs are being rallied up.

After all of this, Citron Research, the ones who predicted that GameStop will go down (only to abandon it) reminds new investors in an updated posted around a day ago to set aside cash for tax.

Meanwhile, at GameStop, there’s another story overshadowed by this whole brouhaha – it’s the fact that GameStop is lagging behind, and it needs to catch up. This was shown in a disclosure. That’s for another story.

Photo by Brett Jordan from Pexels