GameStop Stock Situation

Who are the heroes and who are the heels?

GameStop+Stock+Situation

Gabriel Donaghy, Staff Writer

You may have heard about it recently, whether it be from the news, any social media(s), or even from your friends and family, but the Robinhood/GameStop/Wall Street situation took the world by storm with it stirring up some controversy as well. This matter causes nearly every facet of media to cover it, all voicing their opinions on it. But, really, in this situation, who is right and who is wrong? 

Are the people on the Internet the ones in the wrong for their meddling or are the people of Wall Street wrong for their double standards? Here, we will be giving you a basic summary of what this situation even is as well as trying to figure out who is the hero and who is the heel of this whole thing.

 

This whole situation was started because of businesses like GameStop, AMC, and other kinds that were already on the decline in the stock market, but was accelerated due to the pandemic. Because of this decline, Wall Street collectively bet on GameStop’s stock to decline, which in turn doomed the company. 

A man by the name of DeepF-nValue had been working on changing all of this, but then one of his update posts got people investing and realized they could do something against Wall Street, which abruptly caused many on the subreddit and across the Internet as a whole to invest in GameStop using the investing app “Robinhood.” 

This caused its stock price to soar from what used to be from $10 to $20 on average to $347. This effectively made people who invested a lot

The average cost of a GameStop stock up until January 27th

of money and those who bet against it take a substantial financial blow (which was almost the entirety of Wall Street), this caused many to celebrate as well as many to attack this unexpected turn of events. 

 

But now it seems that this hype and money train is over, as the stock prices seem to be going down and not rising back up, as if this was like a mini-revolution that happened under our noses. But there is always a problem with revolutions–who was in the right and who was in the wrong? Was it the revolutionaries or the ones who were revolted against? 

After an examination of both sides and reviewing the situation in-depth, I have concluded that the revolutionaries (the Internet stockholders) were in the right. The reasoning behind my conclusion comes from their motives. 

The user I mentioned earlier had $44 million in shares off of the stock, but he refused to sell in order to prevent it from plummeting. Many on the subreddit mentioned did this with their constant message being “HOLD” even if they would lose money off of this. They had everything to gain and everything to lose and many on here chose everything to lose in the name of justice against the rich. And it is when you see these people are willing to give up everything for what they believe is right for everyone, that I would have to say the Internet Traders were the heroes of this situation.