LONDON - A surge of retail stock trading over the last year lit the fuse that sent shares of GameStop Corp rocketing higher without a clear business reason, market watchers say, squeezing hedge funds that had bet against the video game retailer and other companies that were out of favor on Wall Street.
Retail investors’ participation in U.S. equity order flows increased to nearly 20% in 2020 from 15% in 2019, while orders from long-only funds fell to 6.4% last year from 9.7% in 2019, data from Swiss bank UBS showed. Retail investors are also buying stock options, the right to buy or sell shares at set prices without putting cash upfront. That takes their dollars much farther and can turbocharge share price movements.Big U.S. technology companies were among the beneficiaries last year. Facebook, Amazon, Apple, Netflix and Google-owner Alphabet saw record inflows as their businesses benefited from lockdowns and their stocks soared.
Market capitalization of world stocks surged to a record $88 trillion, a whopping $33 trillion jump from the March bottom. In the last few days, GameStop’s shares have jumped 1600%, with big gains also for shares of AMC Entertainment Holdings Inc, Blackberry Ltd, Nokia Oyj and others.
Don't know what musk knows,but this hedge fund buy up has only just begun..being non franked dividend stock shares,taxation will get hammered to avoid taxations involved..it's definately a genocide transition..The oldies versus the newbies..it could melt the world if not stopped!
Free market only for big banks and hedge funds 👍
It was not fuelled by bullish sentiment, the fact there were so many short pos. against the stock! The Co. is still dying, this had nothing to do with the Co. and everything to do with pulling BIG leavers against hedgefunds who shorted the stock - which was just the vehicle!
Bullish? Because a group of everyday people decided they are tired of being manipulated... I think you should rethink your wording !!!! Also, you fuelled wrong!
The Robinhood readers didn't make the stocks move, the short squeeze the hedgefunds put themselves in caused that. All the redditors are doing is holding.
Because hedge funds got squeezed and lost billions?
If you need your bills paid send a DM
'Defy logic'? The redditors did the same exact thing that hedge funds have done for over 15 years which is to pressure a stock into a specific up$ or down$ move. And we should have had regulatory scrutiny over this 15 years ago but our govt is owned by the banks. 😷
At the same time a single Hedge fund can short a company out of existence. The reason why the retail traders funded the surge is because of the action of the Hedge Fund to profit from shorting the stock. End that activity and there is no need to have this conversation.
God knows we can't let the regular person win once in a while...
It’s a short squeeze. There should be limits on short positions in both amount and length of holding the positions. Many times there are more shares held short than actually exist.
Shorting is evil
As if shorting over 100% of a company's stock doesn't defy logic 🤡
Retail traders? And your friends the funds do not need regulation? 😂
They couldn’t have driven the price like that without the huge short positions that existed already
while the shorting didn’t. ok sure. why not.
Need to ban short selling. Big guys like hedge funds manipulate the market by shorting a stock. Then when the masses turn the tables on them, HFs start complaining of 'manipulation'. Investigate the HFs and several stockbroking platforms which prevented buying of the stocks.
Naked shorts become baked chorts
Your headline should read: The little guy figured out the Hedge Fund racket and beat them at their scam. Police the hedge funds; the destroyers of companies and economies.
Police chat room speech to prevent the poors from gambling with the high rollers.
Hmmm.....they didn’t complain when $DRYS & $BYND ran up to irrational levels...probably because they were making money 🤣
The SEC needs to arrest Mr. Fomo and Ms. Yolo for manipulating the market.
' ....upending the market if not properly policed'. Well that doesn't sound elitist at all!!
So, it’s ok for hedge funds to “direct and manipulate” the market, but not the average Joe 🤨
Wrong again.
The snouts are circling the troughs.
Are they seriously claiming the free market has failed because short sellers lost?
Your headline SHOULD read that hedge funds are using all their pull to shut down individual traders who legally banded together on reddit. There is now a class action against Robinhood.
Analysts warn that the people is not as dumb as rich believe and if not repressed they may get back what is rightfully theirs, therefore the government must act to save the rich from losing in their own game
How much were yall paid to write this nonsensical orangutan shit?
ANALYSTS ?
Wrong lede, more like: Hedge Fund tries to bully retail stock, gets caught with their pants down and ends up getting the really short end of the stick! IMHO, screw the market! It’s all speculation and this hedge fund just got played in their own game! Hahahaha 🤷🏻♂️
People have the power.
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