GameStop Won’t Stop:The Stock Market Enigma with a Reddit Based Cult Following

Cohen, R. (2021, July 20). Pg-13 pic.twitter.com/b2hraf1yfr. Twitter. https://twitter.com/ryancohen/status/1417315406272864258.
u/shadowman48ped. (2021, June 25). r/Superstonk – just a reminder for apes going into Monday after a crazy weekend. reddit. https://www.reddit.com/r/Superstonk/comments/omy6t7/just_a_reminder_for_apes_going_into_monday_after/.

The original “Meme Stock” GameStop (NYSE: GME) has been experiencing price fluctuations since early 2021 that have consistently baffled experts. Hot off the heels of having increased a slight excess of 30% in price on August 23rd 1.59 million dollars worth of GameStop calls were purchased in expectation for its price going even higher. GameStop’s price movement is attributed to the massive following the stock has gained as a short squeeze target on social media platforms such as Reddit. This attention has notably been welcomed by GameStop’s new Chairmen Ryan Cohen who has consistently tweeted out cryptic pictures, gifs, and videos that correlate with GameStop’s positive price progression, each of which has received hundreds to thousands of likes. As of late May, short-sellers had lost 6.7 billion dollars because of their betting against GameStop. Despite GameStop’s current apparent price ceiling at 300 dollars, it’s not unreasonable to assume that it could permanently blast past it before year’s end. Still, some are waiting for GameStop to plummet back to earth sighting the fact that they don’t believe the company’s stock price should be at 200 dollars given its negative per-share earnings profile. However, people with this stance have not done well historically and it is generally advised not to bet against GameStop right now.

I’ve been following what has come to be known as the “GameStop Saga” since mid-April through the multiple GameStop related subreddits including SuperStonk, DDintoGME, and GMEjungle. As of writing this the most prominent subreddit, Superstonk has 599,402 individual users a relatively small number of whom post “dd” or “due diligence” regarding progression to an event called the “Moass” or “Mother of All Short Squeezes”. During the Moass it is believed within these circles that the price of GameStop’s stock will rise to previously unthinkable highs driven by a myriad of factors that have yet to be acknowledged in the mainstream. The belief in the Moass has notably been spurred on by Ryan Cohen in his aforementioned cryptic tweets. These tweets being promptly decoded by the Reddit community immediately after their being posted. Linked below is a brief overview of the circumstances that are leading people to believe the Moass is inevitable. I have to note that none of this is financial advice.

September 1, 2021 David Moadel, et al. “It’s Time to Face the Truth — Gamestop Stock Is Unstoppable.” InvestorPlace, 1 Sept. 2021, investorplace.com/2021/09/time-to-face-the-truth-gme-stock-is-unstoppable-gamestop

u/Doom_Douche. (2021, April 27). r/Superstonk – why the “dumb money” is still betting on GameStop. reddit. https://www.reddit.com/r/Superstonk/comments/nkqai5/why_the_dumb_money_is_still_betting_on_gamestop/?utm_source=share&utm_medium=ios_app&utm_name=iossmf.

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