The stock value of Gamestop is now dropping substantially. This as Redittors continue to urge each other to continue to hold the line.
The Gamestop saga continues. Today, the companies stock value sunk all the way to $90 a share. As of this writing, in after hours trading, the value is even lower, plunging all the way down to about $85 a share. The value is, of course, much higher than a few weeks back when the value was pegged at below $20 a share. Still, compared to the value on January 27th, where the value shot up all the way up to $347.51 a share, the current value is quite the plunge.
Of course, we have been observing the activity by the 28th. We reported at the time how Redditors were driving up the stock value. The idea wasn’t to make money (though some did walk away with quite a nice chunk of change anyway), but rather, make multi-billionaire hedge fund CEO’s lose money. Those hedge fund CEO’s have been shorting the stock for quite some time and making money by driving the value down. In short, it was a crowdsourced effort to give a giant middle finger to the very people the stock markets were benefiting the most.
Of course, the idea of driving up the stock value ran into hurdles. Robinhood, one of the apps people were using to buy the Gamestop stock, blocked users from buying and only gave people the option to sell. Some users said that the app was even forcibly selling their Gamestop shares without their authorization. Other apps were halting the buying of those stocks as well. Still, it sparked massive outcry and even sparked a round of review bombing. Google intervened and deleted those reviews in an effort to maintain the apps reputation and search rankings.
This fuelled even further accusations that the apps were trying to act on behalf of those hedge fund billionaires. Accusations of collusion and criminal activity ran rampant across social media. It even caught the attention of the US government where lawmakers on both sides of the aisle question why there is one set of rules for special interests, and another set of rules for everyone else.
Of course, the trading apps and Google weren’t the only ones trying to put a stop to users simply buying a certain number of stocks. Discord shut down a related WallStreetBets server. From Ars Technica:
The WallStreetBets subreddit (WSB), widely credited with kickstarting GameStop’s epic stock run in recent weeks, was briefly taken private by moderators Wednesday night amid a tsunami of “so many comments and submissions that we can’t possibly even read them all, let alone act on them as moderators.” Discord also took steps to permanently ban the official WallStreetBets channel, citing moderators for “continuing to allow hateful and discriminatory content after repeated warnings.”
Discord was the first to act, shutting down the WSB server sometime around 6pm. In a statement provided to the press, the social media service said the WSB Discord server “has been on our Trust & Safety team’s radar for some time due to occasional content that violates our Community Guidelines, including hate speech, glorifying violence, and spreading misinformation. Over the past few months, we have issued multiple warnings to the server admin.”
The statement goes on to specifically clarify that the move was not “due to financial fraud related to GameStop or other stocks. Discord welcomes a broad variety of personal finance discussions, from investment clubs and day traders to college students and professional financial advisors.”
Some are saying that the big drop is the result of Redditor’s losing interest in the stock value. The Financial Post is saying that it’s all over:
The speculative activity hatched online has captivated global markets, drawing attention from U.S. politicians and overwhelming brokerages around the world. Now, the tide is turning.
“The short squeeze momentum met its inevitable end,” said Mark Taylor, a sales trader at Mirabaud Securities. “It seems reasonably clear that as the cheerleading and rage against the machine dies down, the man on the street is left holding the bag again.”
Of course, Reddit posts on WallStreetBets paint a very different picture. One post talks about how there are still forces acting to suppress the share value of GameStop, but the poster is continuing the effort to hold onto the stocks. Another post quotes Mark Cuban while urging people to hold onto GameStop. In another post, one poster says to >expect huge swings in the value for the next while.
Still, there is some news outlets suggesting that this ride might be coming to an end. “End of the Rebellion?” asks Huffington Post. “GameStop Corp.’s rally came to a screeching halt” writes BNN. The question at this stage is which you believe: Reddit or the media? We may find out in the coming days which one holds out.
Drew Wilson on Twitter: @icecube85 and Facebook.
