Thursday, January 28, 2021
Fools Rush In
Retail investors worldwide have pushed the stock price of Gamestop to frothy heights, which can't be sustained in the long run. Hedge funds that shorted the stock are taking huge losses. Little guys are bleeding Wall Street insiders. This is going to end badly, however, and plenty of investors are going to be hurt. The real questions are how such fads get started and how they are sustained in the face of reality. This is a case study for communicators who want to reach media targets but do not want to spark a craze of stupid action. The frenzy apparently started on a Reddit community, r/WallStreetBets, and branched out from there. Gamestop, if it has any ethical sense, should try to stop the wild speculation before too many get hurt. It is a time for the company to speak out. Will it?
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