The community that took on Wall Street investors betting against GameStop and AMC is now invite-only. That seems to have spooked some investors.
C|Net – Ian Sherr |
For the past week, Reddit’s WallStreetBets community has been the center ofbetween large Wall Street investors and . Now, it’s been locked, and appear to be dumping their shares.
Shares of GameStop and AMC dropped dramatically in after-hours trading shortly after Reddit’s community was made only viewable through an invite.
GameStop shares fell 32% in after-hours trading late Wednesday to $218.32 per share, down from $347.51 at their close. During the day, they’d more than doubled. AMC as well fell more than 40% to $11.90 per share, after closing at $19.90. That stock had risen more than 301% during the day.
The moves are the latest signs of how volatile the Reddit community’s battles with Wall Street investors can be. Though GameStop shares have been jumping in recent days, analysts and experts say they’re doing so because of quirks in the market, and near bankruptcy late last year.. The same is true for the movie theater chain AMC, which had warned it was
All this wasn’t the only bad news for the WallStreetBets community. The popular gaming chat app Discord also banned the group, though not for financial fraud. Apparently, it had been repeatedly warned for posting hate speech and glorifying violence. “Today, we decided to remove the server and its owner from Discord for continuing to allow hateful and discriminatory content after repeated warnings,” Discord said in a statement.
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Many of today’s young adults spent their youth in GameStop stores, lining up for new consoles, as well as buying and selling used video games. Now some of those people are making a fortune Reddit to .and cheerleading their friends on
Though GameStop itself hasn’t fundamentally changed much in the past month, its stock has shot up more than 9,700% — that’s not a typo. This dynamic has led Wall Street investors who bet against the company’s future to lose billions of dollars, and the excitement is.
Over the past week, the finance world watched in shock as GameStop stock rose to unthinkable levels. On Wednesday afternoon, the stock hovered around $325 per share, up from from historic lows of around $3.30 per share in the summer of 2019. Even Elon Musk tweeted about it, pointing his 43 million followers to a link of the Reddit community investing in GameStop.
“We’re seeing a phenomenon that I have never seen,” Jim Cramer, a Wall Street commentator on CNBC and a former hedge fund manager, said during a segment Monday. And GameStop could be just the start. “It’s insane.”
This may seem like an oddball story about Wall Street investors being overrun by excited social media users. For some, it’s been fun to watch those investors get taken to the cleaners by a bunch of people posting rocket emojis, saying GameStop shares will go “to the moon.”
But for some on Wall Street, it’s the latest sign of how social media can upend everyday life. Twitter has changed the worlds of news and politics. YouTube and Instagram have transformed the fashion, beauty and entertainment industries. Now Reddit is taking on Wall Street.