Forbes - Why You’re Almost Guaranteed To Lose Money Trading GameStop, AMC & Other Meme Stocks
Aug 26, 2023
Retail investors initiated a Reddit-driven campaign on WallStreetBets to trigger a short squeeze strategy for boosting GameStop's stock price, counteracting hedge funds' short bets. This trend gained momentum via social media discourse, capturing mainstream media's focus, and enticing individual investors aiming to disrupt institutional dominance. As the stock value climbed, short sellers cut losses by purchasing shares, fueling further price hikes.
The episode raised concerns about market manipulation, prompting discussions on regulatory interventions and a broader meme stock movement. This occurrence underscored the potential of online forums and social media to impact market dynamics, spurring debates on the financial industry's future. The term 'meme' stock emerged, denoting stocks driven by significant volatility influenced by online chatter, trends, and speculation across social media platforms and internet communities.