Why Can Retail Investors Break Wall Street? Public Opinion May Become an Invisible Weapon.
Just a few days ago, a retail Avengers swept the Internet. The real reason why Wall Street was cut by leeks was thought-provoking…
Retrospect of retail investors beating Wall Street
The protagonist of this story, GME, is actually a stock code of Gamestop. Gamestop is a game station. This is a 37-year-old game retailer. However, in the era of network connection, the game station still specializes in selling physical video games. Coupled with the epidemic of last year, Gamestop has not developed well. Wall Street It can be said to be very negative.
This company has lost money for three consecutive years, and its stock price fell to $3 last year. Later, due to the epidemic situation and the rise of the home economy, game companies were popular in the market. This “antique” game company also turned upside down, and its stock price rose to $40 early this year.
At the end of the year, the world-renowned short-selling fund Citron issued a short-selling announcement, warning that the price of 40 yuan far exceeded the actual value, and the game station “stock price is inflated.” On January 19, Citron made a statement: The share price of Game Station should fall to $20 to be reasonable. Suddenly, a number of major funds began to dance, and one after another started shorting game stations.
However, the Wall Street elites who are accustomed to calling the wind and calling the rain never expected that their actions angered young retail investors in the United States-”Game Station is our childhood”. On the Reddit forum where American retail investors gather, there are millions. The retail investors voluntarily defended the share price of Game Station. They called on investors to continue to buy this stock and work together to defeat institutional shorts.
Citron has shorted 10 Chinese concept stocks, 7 had a lower limit, and 3 had delisted, which is an impressive record. But this time, they met a group of crazy retail investors.
Hackers hacked into Citron’s social accounts, causing Citron to be unable to speak normally. Then, in the short-selling war with institutions, 3 million retail investors united together and took out real money to buy the game station stocks. In 13 days…