It’s been a weird week on Wall Street, to put it gently. A campaign that began on Reddit and quickly spread to Twitter and Tik Tok, has upset a normally very intentional market. Social media enthusiasts have taken to Robinhood and similar apps to trade in small amounts, but with a huge effect.
For example, Game Stop ($GME) began the year trading at $17.25 per share. As of the time of this writing, the struggling video game retailer is trading at $315 per share. The rise has literally nothing to do with the normal market ups and downs.
The traffic has been so intense users are reporting trade cancellations and crashes of Robinhood, TD Ameritrade and Fidelity this morning.
— Merritt Patterson (@MerriPatt) January 27, 2021
As one Twitter user said, this is Robinhood being a lot more like the real Robin Hood.
— Reed Jones (@thereedmjones) January 27, 2021
Other Twitter users poked fun at the near instant growth to GameStop, and now to AMC. This morning, a campaign called #SaveAMC began, with small-time investors dumping their loose change into the struggling movie theater chain. Nearly decimated by the pandemic, the campaign is trying to breathe new life back into the company.
The company closed trading yesterday at $5. Today, the stock opened trading at $20.30. As the campaign takes hold, expect it’s rise to continue.
— rom (@romwidme) January 27, 2021
For many, this is more than just a campaign. They see it as a movement meant to jab back at hedge fund investors who have spent the past year profiting by shorting stocks of struggling American businesses.
That’s why I’m all about this movement. It’s not just money.
It’s about that time in 1993 where I sat there and Spielberg made me feel like dinosaurs were real.
This is about those hedge fund bafoons benefiting from companies going under.
NOT TODAY! #SaveAMC ????
— David Lew ? (@davidlew) January 27, 2021
Robinhood and Reddit are literally robinhooding Wall Street and I’m all for it #saveamc
— Kaz Nicol (@thecham_bears) January 27, 2021
— Mike Baker (@mzbaker_21) January 27, 2021
It’s tough to say how long the trend will last, but this campaign seems to only be picking up steam.
Look for more on this story as it develops.