Wiser! #3 — Hey Alexa, would you get the door for me?

What’s all the fuss about GameStop & Robinhood?

Issue published Feb 26th, 2021

This is a tech story of stock market trading, capital markets, digital platforms and the power of social networks, with a dose of anarchy thrown in for good measure. Apparently there are 9 movies already lined up to tell this story.

But it is far from over…

ACT 1

It starts with GameStop, an unremarkable old world, bricks and mortar, video gaming retailer of little significance. That was until the 12th January.

In the following 3 weeks the stock skyrocketed to $480, before crashing back down! An unexpected rollercoaster ride for a stock that had flat-lined around $5 for all of 2020.

So, how could it happen?

It starts with Reddit and the subgroup r/WallStreetBets, an online forum of around 8 million users who share conspiracy theories and chatter on meme stocks. The lead character is a YouTuber called “Roaring Kitty”, who is, in fact, “not a cat”.

As GameStop chatter on Reddit gained momentum, the stock went viral, aided and abetted on TikTok.