WSB: Beating the Shorts w/ Gamification

If you follow my podcast or follow me on TradingView, you would know that I have been mostly watching r/wallstreetbets from the sidelines. Infact, my coverage of some of the recent events been almost live. What interests me surrounding GameStop is that when it was being shortened, it was well under its fair market cap value.

Short sellers found a way to basically state, “It is a retailer, everybody is shopping online, so it is worthless”. Obviously, people didn’t like that. Gamestop was having plans in regards to growth and was diversifying online. They also had extremely decent revenue considering a company that was shortened over 100%. People rallied up on Reddit and the rest is history.

I think this is an example of gamification and the rise of social media in regards to overall sentiment of a stock. Many financial firms can shake an entire stock w/ one tweet causing panic and a group of pseudonymous traders had enough.

GameStop was likely picked because of the whole gamer culture as well, and many people liked that stock. I wouldn’t call this foul play. This is just an example of how social sentiment shakes stocks, and short sellers were basically getting a taste of their own medicine.

Overall though, r/wallstreetbets has been interesting to watch. Maybe in the long run, it is some large social experiment?

Disclosure: Please keep in mind, everything I say is on an opinion based basis. This is not meant to be taken seriously or as actionable financial advice. Do your own due diligence and any trades/investments you do is at your own risk. We are not responsible, proceed with caution and we are trying to voice an opinion not meant to warrant action. This is solely meant to be viewed as a non actionable opinion not meant to be taken as seriously or as a form of actionable advice.