![]() If you look at other subreddits such as /r/superstonk, you may find some more conspiratorial traders still looking to imprison their imagined opponents, or some hoping that Gamestop's price will have a comma or two in it someday. Business books, where they do any investigating at all, tend to refer to details about closed-door meetings, where this was all in view of the general public, or at least anyone who knew where to look.Īt the close of trading today, March 11th, Gamestop was down to $92.69. But boosters and retail investors were not the only ones who benefited - while some hedge funds such as Melvin Capital had short-sold Gamestop, others had also bet on the stock rising shanking others for short selling is not new, and Jakab is sure to point this out. He points out how an interest in retail investing began over the pandemic - boredom and a desire to earn some money - and how ideas spread among social media outlets such as Reddit, and the subreddit /r/wallstreetbets.Īt the time, there was a genuine desire among retail investors on Reddit and elsewhere to stick it to the big hedge funds and especially short-sellers the fact that they were excited by the prospect of huge gains by users such as /u/DeepFuckingValue also got the crowd excited. He brings up the vulgar slang of Reddit but also what a gamma squeeze is- the interaction of some terms that are less known to the layman or some experts. Jakab writes a summary of events for the general reader but one with an interest in finance. (If you believe that last one a year later, I have option about a bridge in Brooklyn to sell you.) With all the ruckus, Congress made a grand show of a hearing. ![]() On social media, there was a wild ruckus at the prospect of retail traders having upended a hedge fund, and some of the more frenzied commentators on social media said this may have been an act of revolution. It had become a heavily traded stock on an active day, and there were limited cases of suspended trading on some retail platforms. In January 2021, which now seems like about 3 years ago, the price of the stock of Gamestop, a video game and electronics retailer, soared to over $480, when it was all but left for dead earlier that year. But, Jakab argues, there really is a way for ordinary investors to beat the pros: by refusing to play their game. In this nuanced analysis, Jakab shines a light on the often-misunderstood profit motives and financial mechanisms to show how this so-called revolution is, on balance, a bonanza for Wall Street. Online brokerages love to talk about empowerment and "democratizing finance" while profiting from the mistakes and volatility created by novice investors. The surprising truth? What appeared to be a watershed moment-a revolution that stripped the ultra-powerful hedge funds of their market influence, placing power back in the hands of everyday investors-only tilted the odds further in the house's favor. Drawing on his years as a stock analyst at a major bank, Jakab exposes technological and financial innovations such as Robinhood's habit-forming smartphone app as ploys to get our dollars within the larger story of evolving social and economic pressures. The Revolution That Wasn't is the riveting story of how the meme stock squeeze unfolded, and of the real architects (and winners) of the GameStop rally. Their weapon was GameStop, a failing retailer whose shares briefly became the most-traded security on the planet and the subject of intense media coverage. Malkiel, author of A Random Walk Down Wall Streetįrom Wall Street Journal columnist Spencer Jakab, the real story of the GameStop squeeze-and the surprising winners of a rigged game.ĭuring one crazy week in January 2021, a motley crew of retail traders on Reddit's r/wallstreetbets forum had seemingly done the impossible-they had brought some of the biggest, richest players on Wall Street to their knees. If he touched gold, he would bring it to life. The saga of GameStop and other meme stocks is revealed with the skill of a thrilling whodunit.
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