Photo by Michael Förtsch

GameStop, Stock Market, and Reddit

On January 27, the stock market tables turned drastically. Reddit users banned together and bought large quantities of GameStop stocks, as well as Nokia and AMC. Almost a week after the incident started, it’s still going on. Here’s how it started, and how it’s going now with GameStop and the stock market.

 How it started

Big businesses love to play with hedge funds, betting on companies to go under to make a profit. As a result, the money that the company loses goes to the fund holders. In response, Reddit users on the wallstreetbets page collectively decided to buy GameStop, Nokia, and AMC stocks. Thousands poured their savings into driving up these stocks. GameStop took off the most when Elon Musk tweeted “Gamestonks!!” with a link to the Reddit page. Prior to this, GameStop was worth roughly $35/share. On the morning of Jan 28, GS was worth $469/share. Because of this, the hedge funds are now as good as invaluable. Wall Street struck back by pausing GameStop stock trading and having the Reddit page taken down. That same afternoon, the stocks plummeted to a mere $130 per share. The lines have never been all over the stock charts since the 2008 recession.

 

 How it’s going

As it made national news, the ordeal is still ongoing. While GameStop was temporarily paused, it went back up after re-opening.  GameStop, a place so dear among millennials, is now revived thanks to loyal fans. Previously, the height of GameStop stocks was in 2007 and 2013 when it was at $50/share. Now, it is at $99/share and still being heavily traded. Wall Street is now regulating the stock market more heavily thanks to GameStop and Reddit. The elites’ hedge funds are shaken, and the middle class is ready to take more control over the stock market. Also, wallstreetbets Reddit page is available again.

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The US Stock Market 2020

The stock market went through drastic highs and lows this year. This is due to the pandemic, the presidential race, lawsuits, and even tweets. Read on for how these factors affected the biggest stock holders. Also, see who’s rising in the market and consider investing in them in 2021!

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S&P 500

First, we’ll look at the S&P 500 Index. Statista says,

 “Between March 4 and March 11, 2020, the S&P 500 index dropped by twelve percent, descending into a bear market. On March 12, the S&P 500 plunged 9.5 percent, its steepest one-day fall since 1987. The index began to recover at the start of April.”

As of April 14, the value was $2,850 per share, just a few hundred dollars below their pre-COVID era. Then, their value rose above $3,000 per share at the end of May. Since then, it’s gradually been rising. Now, as of December 15, the value is at $3,666 per share.

closeup photo of silver iMacSo, which companies fell out and which ones rose? The five biggest companies to soar in 2020 are:

  • Amazon (AMZN). Due to stay-at-home orders, Amazon revenue and stocks gained profit. CEO & Founder Jeff Bezos is now the richest man on the Forbes list! Each share is valued at $3,157.
  • JPMorgan Chase & Co. (JPM). America’s largest bank and 7th largest bank in the world. They faired okay during the pandemic. However, they did see a drop after making changes to their borrower policy. Their value is now worth $120 per share.
  • Visa (V). Overall, banks survived the pandemic thanks to the Federal Bank Act. Visa saw more success in 2020. Today’s value is at $209 per share.
  • Tesla (TSLA). Elon Musk’s engineering and company management skills are earning him big bucks. He also soared up on the Forbes list and is now at #7. But, his stock value does fluctuate according to what he tweets. Tesla is worth $639 per share.
  • Brookfield Property Reit Inc (BPYU). Despite worries that the housing market would tank due to evictions, business is good. BPYU is at $15.90 per share.

2020 Stocks

While the stock market tanked in March, overall it has been steadily returning back to its normal rate. However, the presidential race is an important factor now. Now that Joe Biden is confirmed for inauguration while son Hunter Biden is under legal fire, we will have to closely watch the stock market. Also, another factor affecting stocks is Bitcoin. It has recently seen a drastic increase in December. One Bitcoin is now worth 19,531.20 US dollars. Also, technology development and releases are contributing to the rising stocks. While Apple stagnated a little this year, they are expected to stay as the leading smartphone company.

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Overall, there’s no danger of a stock market crash. While Biden’s confirmation will affect Wall Street, stocks are expected to rise more in 2021. Check back for our 2021 stock prediction blog! And, please feel free to comment and let us know what shares you’re investing in.

 

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