GameStop’s wild ride on the stock market is still going strong, as one of the crazier Wall St. stories continues to stun hedge fund managers … to the delight of Reddit investors.
The video game retailer’s stock price has surged Wednesday — it’s up more than $220 for the day, and is approaching $400 — thanks to a group of traders belonging to the Reddit message board, WallStreetBets.
Here’s what’s going on, in layman’s terms — the Reddit investors basically decided to make GameStop Corp. (GME) their main stock market focus, buying up as many shares as possible in order to screw over hedge funds that have shorted the stock … meaning they bet against it.
So, the Redditors have been encouraging everyday investors — called retail investors — to buy up GME stock to increase its price and, as a result, the hedge funds are getting screwed.
Elon Musk, who’s had battles with hedge funds shorting Tesla in the past, joined the troll job — that’s what hedge fund managers see this as — by tweeting a link to the Reddit message board behind the GameStop action.
All of it has been working — GameStop began the year at $19, reached the $90 mark earlier in the week … and it just got much closer to $400 in the time it took to write this article.
Meanwhile … hedge funds that shorted GME are losing tons of money.