Right now, GameStop is the hottest company in the United States. Yes, the company that saw a $673 million net loss in 2019. That GameStop.
Since Jan. 1, 2021, GameStop’s (GME) stock value increased more than 1,700 percent.
It was a carefully calculated operation by members of the r/WallStreetBets subreddit, people who are day-trading experts in the stock market to share news, tips, and memes related to the market.
GameStop became a topic of interest in the subreddit earlier this year, when Chewy co-founder Ryan Cohen joined the company’s board. Based on trading trends, Redditors knew hedge funds and short-sellers would be going after stockbrokers to purchase the stock at original price and sell them on the market with the intention of buying the stock back when it drops in price. The practice means people profit off a company’s failure.
Well, you can’t profit off failure if those stocks start skyrocketing.
Savvy Redditors organized a plan to drive up GameStop shares around the time Cohen was announced on the company’s board. And it worked. So well that ordinary people are seeing thousands, and even millions, overnight.
Redditors are now taking to the platform to share how the community’s collective effort changed their lives for the better.
This person is up nearly $50,000 in just a day and is using the money to help their family.
Redditor Longjumping_Ad_58881 shared a screenshot of their student loan payoff. The amount was $23,504.45.
This person was able to save their best buddy, Toshi. The two-and-a-half-year-old American Bully needed a $4,000 surgery that his human couldn’t afford.
“I put all the money I did have in GME around $97/ share & AMC at $4.84 Tuesday morning (a little less than $1k) with an exit plan to get out once I had enough for his surgery,” they wrote. “This morning after market open I was able to sell enough to pay for his TPLO surgery! I am in tears and really grateful. Thank you everyone and good luck!”
Another thread emerged where Redditors shared how they plan to use their recently acquired fortunes for good.
Redditor Sanghist shared they’ve been wanting to give to charity for 12 years but have never had the funds to do so until now. User Fstmiddy shared a portion will go toward The Rescue for PTSD, an organization that offers veteran support through canine rehabilitation.
Nice work, Reddit. Nice work!