Table of Contents
- 1 How did GameStop affect hedge funds?
- 2 Why is Melvin capital being targeted?
- 3 How did Redditors beat Wall Street?
- 4 Did Melvin capital cover their shorts?
- 5 How did Reddit beat the hedge funds?
- 6 Is Reddit’s ‘wallstreetbets’ more popular than ‘investing’?
- 7 What is wallstreetbets and is it safe?
- 8 What does it mean when a hedge fund short a stock?
How did GameStop affect hedge funds?
Hedge funds getting burned on their GameStop shorts scrambled to take down overall risk and sell winners to raise cash, posting their largest week of de-leveraging since 2009, according to data from Goldman Sachs. The damage inflicted by the so-called dumb money seems to be lasting.
Why is Melvin capital being targeted?
Melvin Capital Management had been betting against GameStop Corp. The action in GameStop was fueled partly by an army of bullish individual traders urging one another on platforms like Reddit to buy shares and options and squeeze Melvin, a particular target of posters.
What is Reddit doing to hedge funds?
The subreddit has played a key role in the shares of struggling video retailer GameStop surging by more than 1,000\% at times this week. The Reddit revolt focused on a strategy called short selling, where hedge funds make money by betting that share prices will fall.
How did Redditors beat Wall Street?
Reddit day traders wanted to beat Wall Street to prove the system is rigged. Instead, they did it by losing. Reddit day traders tried to beat Wall Street at its own game to prove the system is rigged. Instead, brokerages locked them out and their holdings tanked, while some hedge funds still won big.
Did Melvin capital cover their shorts?
Melvin Capital is out of the shorting game — or at least shorts that have to be disclosed publicly. Melvin had already acknowledged covering its GameStop short, following a short squeeze tied to a Reddit forum called WallStreetBets, whose members included retail investors in the video game retailer.
Which one of these billionaires did an AMA on WallStreetBets?
In a Reddit AMA on Tuesday morning, billionaire investor Mark Cuban expressed gratitude to the members of the WallStreetBets Reddit forum. “Thanks for changing the game,” he said. “Thanks for taking on Wall Street.”
How did Reddit beat the hedge funds?
A tweet from Tesla and SpaceX CEO Elon Musk on Tuesday also boosted the stock price. How did all this happen in such short span? Well, a group of users came together on the online forum Reddit and pushed the price of the stock, beating Wall Street hedge funds, pretty much in their own game.
Is Reddit’s ‘wallstreetbets’ more popular than ‘investing’?
While the sensible “Investing” thread has 183,000 members, its less popular cousin “WallStreetBets” has 38,000. However among that number are young Reddit members willing to risk it all on outlandish positions in a bid to get rich quick like Martin Shkreli, writes Sally French for MarketWatch.
Is Reddit’s finance threads responsible?
Reddit hosts thousands of threads on many different topics, but finance is one area that is particularly interesting, and while some finance threads encourage responsible investing there is one that does just the opposite …. WallStreetBets.
What is wallstreetbets and is it safe?
Wallstreetbets, a message board, or subreddit, on the popular news and social site Reddit, has become a home for investors who want to make extremely risky bets on the stock market. There are now roughly as many Wallstreetbets members as there are Bloomberg terminal subscribers—over 300,000.
What does it mean when a hedge fund short a stock?
(Don’t worry, we’ll explain what that is.) When a hedge fund or investor shorts a stock, they basically speculate that its price will go down. They do that by borrowing, usually from a broker-dealer, shares of a stock that they think will lose value by a set date and then selling them at the market price.