Reddit versus Wall Street: Social Trends
Since the rise of social media, information has been readily available to the average user. People have been able to grow their networks, advertise their businesses, and create their brands.
Just this past week, social media has been influencing the stocks of wall street. Reddit, an anonymous social media site, has driven up the stock price of Gamestop. The sub-community r/Wallstreetbets is a stock investment advice community with a soft spot for non-profitable stocks.
For context the start of the pandemic, Gamestop stock prices averaged $4. As of the 29th, stock prices are $325 a share, according to Yahoo! Finance.
Initially, the company had announced new directors for their board, which caught the attention of wallstreetbets users. They urged its members to invest in Gamestop, and stock prices quickly rose.
Because of user-friendly stock trading apps like Robinhood, buying stock options has democratized the process. Now, with an influx of Reddit users, they have driven up the prices of Gamestop’s stock, demonstrating the power of social media.
SOURCES: USA Today