Reddit’s WallStreetBets is long Gamestop (GME) taking on WallStreet, Citron, and literally everybody else

With short-interest hovering around 140%, institutions loading the boat being net short, and “activist” investment firm, Citron, all blasting negative press towards Gamestop (GME). It’s no wonder the stock has been making headlines after the share price has more than doubled in the last week. While everyone was short on the stock, we have to ask… Who were the pioneers that started going long before what appears to be the beginning of this short squeeze? Well, activist investor and GME board member, Ryan Cohen, of course… But who else? If you guessed WallStreetBets then you just won a gold star my friend, let me continue.

The idea of going long on Gamestop started back in October when posts from user u/DeepFuckingValue on Reddit started to gain traction. Going by the post history, DeepFuckingValue has been long on GME since early 2020. He would post his monthly update on his position which went un-noticed for a very long time. It wasn’t until October of 2020 that his post blew up on WallStreetBets with over 13,000 upvotes. Another post he made 2 months later, in December, ended up getting 10,000 upvotes on the sub-reddit. From October through December WallStreetBets users have been loading up on everything from call options to shares. The stock didn’t do much during this period, but the sub-reddit didn’t give up. They began to call Ryan Cohen “Papa Cohen” and chant his name through the comments. Here’s a look at what share of comment volume mention the ticker GME on WallStreetBets has been like recently.

The top stocks have literally been all about GME with the next (and not so close) in line being Tesla (TSLA), Palantir (PLTR), and Apple (AAPL). If you’ve been browsing the WallStreetBets forum you might have actually found it a little annoying to be reading the comments all about “Gamestop this” and “Gamestop that” it’s been nothing short of crazy up in there!

It’s no wonder Cramer even mentioned that the sub-reddit has “taken” charge of the market. Although this is a GREAT marketing ploy, is this really the case? Most likely not as Robinhood investors generally speaking don’t have enough capital to move markets. The amounts invested from users on the sub-reddit is more likely to be less than a drop of water in the ocean. It takes billions of dollars to move markets, but don’t quote me on that.

So what happens now? The last time a stock became the most talked about stock on WallStreetBets and was sitting at about 50% market share of comments was NIO back in November. What happened to the share price after? It dropped nearly 20% from the highs. Here’s a look at the Gamestop sentiment chart.

Will the Gamestop squeeze continue? Will it take a breather after this massive run? I’m not sure, but either way it’s been a hell of a time being a part of the forum and watching this from the sidelines.

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