10 Facts About Reddit Traders vs Wall Street Guys You Need to Know

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2. GameStop and Reddit traders

GameStop is an American video game retailer, has seen profits dwindle in recent years due to the emergence of online businesses like Amazon and Netflix; also, people can now download paid games instead of heading to a shop.

As fewer clients visited their shops, the Covid-19 pandemic simply made things worse. Since GameStop was on the downside, many investors shortened their market shares, expecting the business to go under soon. Then everything was changed by Reddit traders.

Reddit traders initiated a short squeeze on GameStop, In other words, by buying and selling GameStop stocks amongst themselves, they generated a rapid increase in the price of a stock. Instead of a profit, investors shortening the stocks of GameStop are now facing enormous losses, because the price of buying their stock is now higher than the original selling price.

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