Hi Everyone,
Looking at the charts today, it does seem like it's game over for GameStop.
From the phenomenal high of $482.55 a share, it's now trading at $140, which is still four or five times would it should be worth and about double its previous all-time high from 2007. Now that the dust has settled, it'll be nice to understand what the lesson in all this is.
No doubt it was a historic event, but what does it all mean?
In my mind, the narrative that main street was finally able to beat wall street at its own game is extremely misguided. As we pointed out early on, there were hedge funds on both sides of this trade.
It's hard to see how buying overpriced shares of a company that's losing money will make the world a better place.
One lesson that the world seems to have learned is that social media can be a leading indicator, and even a driving force, for future price movements.
The Reddit platform is no doubt seeing a massive influx of new signups at the moment, and over the last week, the WallStreetBets community's subscriber base has grown by about four times.