GameStop Stocks Impact on the Market

The last week in January 2021 GameStop Stock filled the Wall Street headlines. One of them from YP investors is that our indicators showed the Market switch to Bad on Wednesday January 27th. Our YP Investors members were instantly updated. 

GameStop Stock

Here are the Details:

Another big headline has the been the short squeeze initiated by reddit forum wallstreetbets. This has shot stocks like GameStop and AMC up due to a group of investors all continuing to buy the stocks together. On Thursday Robinhood and a few other brokerages started intervening with this and the Market. They limited stocks like GameStop and AMC to “Close Only” so no one could buy those stocks on Thursday. 

Now Robinhood is already in trouble with a lawsuit. The SEC will probably side with the retail investors suing Robinhood on this one, since what Robinhood did was direct Market manipulation. Both GameStop stock and AMC stock dipped on Thursday because of the limitations. Although there are two sides to every story, there was also Market manipulation to get the stock to shoot up via the reddit forum. This is much harder to regulate since the internet is so huge, if one site closes or is banned another will popup.

Who Won with the GameStop Stocks Action?

Many Hedge Funds lost billions from their short positions, but some retail investors also lost lots of money from the price increase of GameStop. There is no clear winner with what has happened, but for some a painful learning experience indicating a change in investing and how it will be in the future. It will be interesting to see where the stock prices are in 3, 6, and 12 months from now. 

Published 2/8/2021, Last Updated 2/8/2021

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