Analysis: To the brink and back on GameStop – Wall Street vs Reddit
By Svea Herbst-Bayliss and Maiya Keidan
NEW YORK (Reuters) – On three hours of sleep a night and with no time to eat, one New York-based hedge fund supervisor overseeing billions in belongings often called closing week the most worrying of his life.
“Nothing was making sense anymore,” he talked about, as he watched the stock of GameStop Corp soar, whereas he wager it might fall.
Wednesday was the worst. Fueled by chatter on Reddit and totally different social media to take on Wall Street, merchants used venues like on-line shopping for and promoting app Robinhood to bid up the brick-and-mortar retailer. GameStop surged 135%, on its resolution to gaining better than 1,500% in January with none change in its enterprise outlook. Hedge funds scrambled. By this stage shopping for and promoting had change into so unpredictable all through all sectors that funds had been pressured to dump their worthwhile shares …
