The GameStop Boom is not Over “And Caused by Robinhood”
The game distributor Gamestop, which was initiated by the retail army, faded on Tuesday (2nd) and closed down by 60%. Nevertheless, billionaire Mark Cuban said that this incident allowed these retail investors to know their impact Strength, will not give up just because of a loss, this is just the beginning.
Cuban believes that GameStop’s decline this week is mainly due to the trading restrictions of Robinhood, a popular trading software for retail investors. They restrict buyers from entering the market. When sellers find that buyers are scarce and liquidity is declining, they naturally tend to lower prices in order to get out of stock.
Cuban called on the retail army to keep holdings, because when brokerages like Robinhood cancel the previous restrictions, the power of WallStreetBets (WSB, Reddit popular forum) will return again, and criticize Robinhood for exposing the company’s recent actions that it has no sufficient The funds “help the retail army fight this battle.”
Cuban said: “In the past, I was always warned, “If you want to do more, you have to speak up in the market”, calling on more people to create more buyers for the target, and further increase the stock price. This is exactly what the WSB version is doing. And this appeal is getting stronger and stronger.”
Cuban went on to say that the amateur investors who called on the masses have realized their power and learned some lessons. This incident is just the beginning but not the end. These investors will not run away with their tails caught in a loss.
In addition, Cuban said, young investors’ investment perspectives are also changing. They obtain information through different channels. They prefer digital products to entities. The same is true for the stock market. Generation Z is less concerned about traditional valuation methods such as price-to-earnings ratios.
In the past week, the crowds of retail funds on the WSB version of Reddit pushed up the stock prices of small stocks such as GameStop and AMC Entertainment and formed a short squeeze. As a result, Robinhood raised trading restrictions and caused an uproar on social media. Bringing an impact on Wall Street and arousing government scrutiny.
The GameStop Boom is not Over Strong Appeal And the Plunge is Caused by Robinhood - /10